I’ve had a stocks & shares ISA with Vanguard for the tax year 2020-2021. It’s not full by any means, I’ve got less than £1000 in it over the year. However since it’s the new tax year, what would be the most efficient thing to do?
Leave that ISA account alone. I do have regular direct debits that pay into Vanguard for that account. Do I just cancel the regular payments and leave that ISA account with the money in it?
Create a new ISA account with Vanguard for 2021-2022. Transfer the funds from the previous year into this account and set up a new regular monthly payment option?
I’ve done a bit of research on this but nothing that actually helps, so thought I’d pick the community brains here. Thank you all in advance
If you are staying with Vanguard you don’t need to do anything. You can just keep your payments in place and it’ll start using the 2021-2022 ISA allowance.
If you plan to move elsewhere, you can open one with the new provider and complete their transfer form. They’ll contact Vanguard and get everything moved over. If the new provider also offers Vanguard funds they might just move the shares. Otherwise they’ll sell the shares and move the cash.
Oh really, this makes sense then. I assumed I’d have to create a new account and set it all up again. I do want to stay with Vanguard and keep the same portfolio and regular payments. I assume I’ll just leave it as it is then and they will start the new allowance automatically
Yes, that’s it. From today any new payments will use the 2021-22 allowance. On your dashboard it’ll probably say “You’re not using your ISA allowance”. It just means you’ve not paid anything in within this tax year.
Yeah I think I was thrown off by the ‘you’re not using your ISA allowance’ text. I thought I had to initiate a new account etc, but you’ve been more helpful than the entire help section in Vanguard combined. This forum has helped me and my friends much more than any other place for Finance advice
Just a thought. Are you paying fees by direct debit? It’s particularly handy for smaller balances, as it stops fees eroding your balance or, worse, forcing Vanguard to sell parts of your investment.
