ISAs - frequently asked questions

Find question:

How can I apply for the Vantage ISA?

Online: Complete our online application form using a debit card.

By post: Send an application form and cheque.

Once the account is set up, you can add money to the account by telephone using a debit card. If you have internet access, you can add money online by logging in to your account.

What is the maximum I can invest in the Vantage ISA?

If you invest in the Vantage Stocks and Shares ISA, the maximum subscription for each tax year is £7,200. If you choose to invest less than the full £7,200 in the Vantage Stocks and Shares ISA you can also subscribe to a Cash ISA with another provider. You can invest the remaining allowance (up to a maximum of £3,600) into a Cash ISA in the same tax year (please remember tax allowances can change).

What is the minimum I can invest?

We generally ask for a minimum opening subscription of £3,000. However, if you already hold an ISA you can top up with less.

What is the minimum I can invest on a monthly basis?

For regular saving investments we ask for a minimum of £50 per fund per month. We cannot accept regular saving instructions for shares or investment trusts.

Can I hold more than one fund manager’s funds in the Vantage ISA?

The Vantage service is a fund supermarket so you can invest in almost any fund from any fund manager as well as shares, exchange traded funds, investment trusts, gilts, corporate bonds and cash.

How do I set up a regular saving ISA and what is the maximum I can invest per month?

By completing the Direct Debit mandate at the base of the printed Vantage ISA application form, we can set up a regular transfer of money from your bank account to your Vantage ISA account. We will transfer the money on the 7th of each month (or the next working day if the 7th is a weekend or Bank Holiday) and then invest it on the 10th of each month (or the next working day if the 10th is a weekend or Bank Holiday). For a Stocks and Shares ISA the maximum is £600 if you wish to save for the full 12 months.

How do I change my regular saving instructions?

If you wish to change the amount of money we transfer from your bank account or wish to cancel the Direct Debit, simply complete a regular savings - change to contribution form and return it to us.

If you wish to change the investment instruction, please complete a form to change your fund choice and return it to us. We can also take the instruction in by telephone with confirmation of your password.

How often is income paid to me?

If you have an income producing fund in your Vantage ISA and you opt to have this income paid out to your bank account, we shall sweep up any income you have received and pay it directly into your bank account within the first 10 working days of each month.

What is automatic reinvestment?

Automatic reinvestment is where we use the income payments to buy more units/shares in the stock from which the income has derived. If you hold shares/investment trusts dividends are reinvested as soon as they reach £200 per holding. If you hold Unit Trusts or OEICs, this will be when they reach £50 per holding.

What is the loyalty bonus?

Hargreaves Lansdown receives a renewal (annual) commission from some fund managers. We share this renewal commission with our clients in the form of an annual saving, which we call the loyalty bonus. It is credited to a separate account within your Vantage portfolio. Please note for the few funds for which we do not receive renewal commission, the Vantage ISA annual management fee will apply. This is 0.5% + VAT (up to a maximum of £200 + VAT) per year.

What is the difference between income and accumulation units?

With income units income is paid out to investors. With accumulation units income is reinvested within the fund increasing the price of each unit.

How is the interest calculated?

The interest on cash holdings in the Vantage account is calculated on a daily basis and credited to your Vantage account shortly after the 9th of each month.

How can I withdraw money from the account?

In order to withdraw cash from the Vantage ISA all you need to do is write to us with your instructions.

What is the Annual Management Charge in the Vantage ISA?

The Annual Management Charge is 0.5% + VAT (up to a maximum of £200 + VAT). Please note we waive this for the vast majority of Unit Trusts and OEICs as we receive a renewal commission.

How is the Annual Management Charge deducted from my account?

The Annual Management Charge is 0.5% + VAT (up to a maximum of £200 + VAT). We deduct a proportion of this charge from your account on a monthly basis. The charge is firstly taken from income; if there is no income it is deducted from cash holdings on the account; if there is no cash then we will set up a fees account and ask for the payment in due course.

How can I deal in my account?

Telephone: Call our stockbrokers on 0845 345 0801 or our fund dealers on 0845 365 0802; you will be asked to quote your password.

Post: Send a signed letter of instruction to Kendal House, 4 Brighton Mews, Clifton, Bristol. BS8 2NX.

Online: If you have online access for your Vantage account, you can also deal online.

If I place a deal, how long is the settlement period?

The settlement period for Unit Trusts and OEICs is four working days.

The settlement period for shares and Investment Trusts is three working days.

Please note that any investments you make will not show in your account until the deal has settled.

Can I transfer existing ISAs with other providers to the Vantage ISA?

All existing Stocks and Shares ISAs can be transferred to the Vantage ISA. Some companies may be able to offer a stock transfer whereas others only offer a cash transfer. Some companies may charge for the transfer. Our Help Desk can provide transfer terms for the majority of companies, they can be contacted on 0845 345 0800. To transfer an ISA please complete our ISA Transfer Form.

If I decide to transfer out of the Vantage ISA Account, how do I do this?

The company you are transferring to will provide you with an ISA transfer form. They will then contact us to perform the transfer.

I have shares in certificated form, how can I transfer these in to my Vantage ISA?

In order to transfer shares in to an ISA they have to be sold and then bought back in the ISA. This is known as a Bed & ISA. With a Bed & ISA we waive the normal stockbroking commission to sell your shares, saving you as much as £50. All you pay is 1% (minimum £10, maximum £50) to buy your shares back within the ISA or SIPP and stamp duty of 0.5%. Furthermore as we buy back the shares immediately, the only difference in price will be the standard bid offer spread. Thereafter, the annual management charge to hold shares is just 0.5% (+VAT). To Bed & ISA your shares please send your share certificates and a Vantage ISA application form with a covering letter to our Kendal House address.

Do I receive tax credits for my holdings in the Vantage ISA?

Within an ISA income from funds with more than 60% of their assets invested in corporate bonds is paid gross. Where the income on these funds is not already paid gross we shall reclaim the tax already paid for you and pay that into your ISA as well.

What is equalisation?

When a fund is purchased in your Vantage ISA, it may be purchased between payment dates. During this period the price of the fund will reflect any increased net asset value (NAV) of the fund arising from the dividend building up in this period. Therefore the fund is purchased at an inflated price. In order to compensate you for this inflated price, the fund manager will return some capital to you in the form of an equalisation payment on the same date as your first dividend payment. This return of capital is then deducted from the amount you originally invested to reflect the true cost of the purchase.

What happens to my ISAs when I die?

On death the investments are simply moved out of the ISA into the investor’s estate. The executors can treat them in exactly the same way as investments held in your own name. There is no capital gains tax to pay, however they will be counted in your estate for Inheritance Tax purposes.

Can I buy an ISA for another family member?

An ISA is an individual allowance and therefore in almost all circumstances the individual must pay for it themselves. Cheques may be drawn against joint accounts, but in other cases it is generally best to give the money to the family member and allow them to write a cheque from their own account.