Transfering shares to an ISA

Red_Sue

I have been told that it is possible to transfer existing held shares into a share ISA. The advantages being that the income (divis and buybacks) become tax-free and any shares languishing at a low would be particularly good for this operation. Can't seem to find any info on this site - but I may have mised it. I have also contacted several companies that I thought might do this but to no avail. Anyone help with the pros/cons and companies that I might contact?

dunstonh

Self Select ISAs are the product you are looking for. Pros are tax free. Negatives are that there are fees and for smaller holdings, the fees could outweigh any tax savings.

cloud_dog

Red_Sue wrote:

I have been told that it is possible to transfer existing held shares into a share ISA.

Sue, as far as I am aware you cannot transfer shares into a Self Select ISA; you need to sell them and then deposit the cash into the SS ISA and re-buy the shares.

The advantages being that the income (divis and buybacks) become tax-free.....

Divi's are still taxed at the basic rate although higher rate tax payers do not additional taxes on their divi's.

......and any shares languishing at a low would be particularly good for this operation.

Not sure what you mean by this?

Can't seem to find any info on this site - but I may have mised it. I have also contacted several companies that I thought might do this but to no avail. Anyone help with the pros/cons and companies that I might contact?

Most brokers privide SS ISA accounts, I'm with Squaregain. You can also find brokers by using:

http://www.find.co.uk/investments/ (either "online brokers" or "online share dealing")

cloud_dog

cheerfulcat

Hi, Sue,

You can't transfer shares into an ISA, you have to sell and repurchase within the ISA wrapper. I'm with Squaregain too, and can recommend them.

There's a short course here dealing with ISAs which you might find useful.

I'm not sure what you mean by this

any shares languishing at a low would be particularly good for this operation.

If you hold shares which have dropped in value and you think that they will rise again, the sensible thing to do would be to sell them to capture the loss and buy them back within an ISA. If you don't expect them to rise in price, it's probably best just to sell them and use the loss against future gains. BTW, for anyone thinking of doing this, if you haven't realised any gains this tax year it is useful to crystallise any losses now, as you have greater flexibility in how they are apportioned ( if sold in a year when you have realised gains, the losses are used before the CGT allowance ).