We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Shares/ISA question
CluelessJock
Posts: 200 Forumite
Can someone please advise the current rules re stock ISAs'?
Must a particular investment product have ISA status to qualify as such? If not is it possible to convert an existing shareholding to an ISA, and, if that is possible can a shareholding be part converted up to the investment level?
Many thanks,
CJ
Must a particular investment product have ISA status to qualify as such? If not is it possible to convert an existing shareholding to an ISA, and, if that is possible can a shareholding be part converted up to the investment level?
Many thanks,
CJ
0
Comments
-
If not is it possible to convert an existing shareholding to an ISA
yesand, if that is possible can a shareholding be part converted up to the investment level
Yes. The transaction is known as bed and ISA. It basically involves the asset being sold and bought back inside an ISA. It is a chargeable event for tax but it is easily done.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks,
So as I understand your reply ISAs' do have a special status and it is not possible to simply designate a shareholding as an ISA and the method would be to bed and breakfast the approriate value in shares and bear the associated costs?
CJ0 -
CJ, what you need is a self-select ISA. This is essentially an empty " wrapper " provided by a broker. You then, as you write, bed-and-ISA your existing shares.
One caveat though - not all shares are ISA-able; AIM listed ones, for example, which are not also listed on a recognised exchange. So find out before you sell whether your shares are eligible for holding in an ISA.0 -
cheerfulcat wrote: »CJ, what you need is a self-select ISA. This is essentially an empty " wrapper " provided by a broker. You then, as you write, bed-and-ISA your existing shares.
One caveat though - not all shares are ISA-able; AIM listed ones, for example, which are not also listed on a recognised exchange. So find out before you sell whether your shares are eligible for holding in an ISA.
Thanks for the info; shares are Standard Life with a single holding being (currently) in excess of £3600, so challenge is to convert only part of the shareholding.
CJ0 -
It's not difficult to do this. Do you hold certificates?0
-
cheerfulcat wrote: »It's not difficult to do this. Do you hold certificates?
No, didn’t trust myself to take possession, likely to lose them.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards