Can I move existing shares into ISA?

Dave2112 · 23 February 2007 at 12:47AM

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.

Dave2112 · 23 February 2007 at 1:07AM

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 ??

cheerfulcat · 23 February 2007 at 7:04AM

Are they AIM listed by any chance?

ctdctd · 23 February 2007 at 8:38AM

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.

cheerfulcat · 23 February 2007 at 9:04AM

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.

ctdctd · 23 February 2007 at 9:25AM

Thanks Cheerfulcat - didn't know that.

gazhawkins · 24 February 2007 at 8:47PM

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.

cheerfulcat · 24 February 2007 at 9:11PM

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.

Dual listed means listed on a foreign market as well as on AIM. Actually, I left a bit out; they need to be listed on a recognised stock exchange and be " qualifying companies ".

Foreign shares [...] aren't allowed either.

Yes they are.

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...

Can I move existing shares into ISA?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free