Can I move existing shares into ISA?
Dave2112
Posts: 78 Forumite
Hi - I haven't set up an ISA this year (i.e. nothing, cash or stocks/shares) but have some shares that might benefit from being in an ISA wrapper. How do I go about transferring them into an ISA? Value is about £2k. Not looking to cash them in any time soon as they are a very long term investment.
for info also have £2k which I might put in a cash ISA or invest in shares or funds. Tks Dave.
for info also have £2k which I might put in a cash ISA or invest in shares or funds. Tks Dave.
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Comments
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Have now found...
I already have some shares; can I transfer these into my ISA?
The only shares that can be transferred directly into an ISA are those that have been acquired through one of the following routes:
a savings-related share option scheme
an approved employee profit-sharing scheme
an employee share ownership plan.
In all other cases, you would need to sell the shares, put the money into your ISA and then buy back the shares. This is known as a 'Bed and ISA'.
as the spread is quite wide for these shares....62p per share with possible a 5p spread (can't get accurate figure) not sure it's worth it ??0 -
Are they AIM listed by any chance?0
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IMHO, it's only worth having shares in an ISA if you think you will exceed the Capital Gains Tax threshold of £8500 as you don't get any other tax relief.
So, assuming you don't have any other investments that might make this possible, it's not worth selling and reinvesting your shares.
And if the shares are traded on the AIM market they can't go in an ISA anyway.Do Money Saving sites make you buy more bargains - and spend more money?0 -
ctdctd wrote:And if the shares are traded on the AIM market they can't go in an ISA anyway.
Not true. Many AIM shares have dual listings and are permitted in an ISA.0 -
Thanks Cheerfulcat - didn't know that.Do Money Saving sites make you buy more bargains - and spend more money?0
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Share ISAs are really only of use to higher rate taxpayers, or those lucky enough to be liable for capital gains tax for gains over 8500 quid.
Personally, I'd be grateful to get a capital gain of a tenner!
There's no longer any tax relief on ISA dividends, thanks to Gordon 'Gekko' money grabbing Brown.
Not sure what Cheerfulcat is on about re: dual listings of AIM shares. I would have thought that 99.9% of companies are quoted either on AIM or the LSE main market - but not both. Foreign shares or those quoted on PLUS markets (previously OFEX) aren't allowed either.0 -
gazhawkins wrote:
Not sure what Cheerfulcat is on about re: dual listings of AIM shares. I would have thought that 99.9% of companies are quoted either on AIM or the LSE main market - but not both.Foreign shares [...] aren't allowed either.
HMRC leaflet
Oh, and the notion that ISAs are only of use to higher rate taxpayers is wrong as well. Interest from bonds and gilts is still tax free, the annual CGT exemption looks very small after ten years of regular investment and you never know when your tax position is going to change.
I am reminded of the people who said similar things about PEPs when they were introduced...0
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