Bed-and-ISA?

gterr · 16 May 2013 at 8:33PM

Hi there,

At the end of this year I will have a lump sum which I will be investing in funds - not individual shares - and intend to move into an ISA wrapper year by year. Do I need to do this by a Bed-and-ISA mechanism, or do I just sell the unwrapped funds and buy the funds again within the ISA? I am assuming that if each year I move sufficient funds into the ISA to use up my annual ISA allowance it's extremely unlikely that I'll have any CGT issues, since I'll be below the annual CGT threshold. But do I need to calculate the actual CG and put this figure on my tax return?

Thanks for your time.

grey_gym_sock · 16 May 2013 at 11:05PM

you can do it yourself. a "bed & ISA" mechanism sometimes cuts the dealing fees, but then there usually aren't dealing fees for funds. with some providers, "bed & ISA" may also make the cash available to buy before the sell transaction has settled. but there's no requirement to use that.

for CGT, you don't need to report anything unless you either have total gains over the annual exemption, or total sale proceeds over 4 x the annual exemption.

westy22 · 17 May 2013 at 6:52AM

grey_gym_sock wrote: »

for CGT, you don't need to report anything unless you either have total gains over the annual exemption, or total sale proceeds over 4 x the annual exemption.

or you want to record a CGT loss for carry forward.

bigfreddiel · 17 May 2013 at 8:17PM

gterr wrote: »

Hi there,

At the end of this year I will have a lump sum which I will be investing in funds - not individual shares - and intend to move into an ISA wrapper year by year.

why not just buy the funds in the isa at the end of the year when you have the funds?

I'm guessing you're fully subscribed for this year's isa?

fj

A_Flock_Of_Sheep · 17 May 2013 at 9:42PM

How many people actually own up and pay the CGT if the gain is over the tax free allowance or does the broker tell the tax man and you get a bill?

gterr · 17 May 2013 at 11:58PM

Thanks everyone. Good info (as always).

MoneySaverLog · 19 May 2013 at 1:10PM

A_Flock_Of_Sheep wrote: »

How many people actually own up and pay the CGT if the gain is over the tax free allowance or does the broker tell the tax man and you get a bill?

They seem to know everything. For example they now get real time updates to PAYE payslip information, so they know what you earn each month.

Probably something similar with bank, stocks, property and land data too.

bigfreddiel · 19 May 2013 at 6:18PM

A_Flock_Of_Sheep wrote: »

How many people actually own up and pay the CGT if the gain is over the tax free allowance or does the broker tell the tax man and you get a bill?

well besides being fraud - i guess its just down to plain honesty - i know people who rent out their property and don't tell the tax people - and as i said its fraud plain and simple

fj

Bed-and-ISA?

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