I’ve maxed out my ISA allowance for this tax year, but want to get started investing in my new DIY portfolio. Can I invest in this portfolio as part of my GIA, then move the portfolio to my ISA next tax year? Or do I need to mirror the portfolio inside my ISA and do a transfer between them in April?
If it’s the latter, do I need to sell and rebuy, or do the funds just transfer across?
You’ll need to mirror the portfolio within your GIA. You’ll also needs to sell and rebuy under either scenari as HMRCs ISA rules state the initial topup of your S&S ISA need to be in cash. So you can’t transfer assets from a GIA to an ISA without selling.
Once they’re in an ISA account you can then transfer between providers without selling though.
Thank you, @tom.winterton, that’s very helpful. Can the sale and purchase happen in same window, so I’m not subject to market fluctuations, or do I need to sell in one window and buy in the next, meaning I’m out of the market for about 24 hours?
At the moment on InvestEngine you would have to do the steps separately…Sell the assets, wait 2 days for them to settle, Transfer the cash into your ISA and then re purchase purchase the assets. So you would be out of the market for 2 days.
This is something we’re looking at seeing how we could improve…Ideally we do all these steps for you automatically in 1 trading window. I can’t promise anything on at the moment but we’re area actively investigating how we could automate this for the next tax year
I see. I assume that if I had sufficient cash on hand, I could “short-circuit” that process by adding new cash to the ISA and purchasing the funds in the ISA portfolio during the same transaction window as selling the GIA funds, then withdrawing the cash from the GIA once the transaction settled? I’d only be subject to market spread in that case?