How do I put existing shares owned into an ISA?

I wonder if anyone can help me, I have several shares in BP,BAA and BA not worth much in total but around 2,500, the certificates are just sitting there and I would like to put them into an ISA.
1. How do I go about putting the shares into an ISA and
2. Which company would be the best to use?

Many thanks

Comments

  • dunstonh
    dunstonh Posts: 116,033
    Name Dropper First Anniversary Combo Breaker First Post
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    You can share exchange them into most stocks and shares ISAs. This is classed as disposal for CGT purposes (as is selling them to do it).

    The tax benefits of having them in a self select ISA may not be enough to cover the charges.
    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.
  • Thanks for that, do I just get in touch with any bank or building soc to get things started?
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    You have to sell the shares first and then buy them again in the ISA ( a procedure known as "bed and ISA".)

    You would need to open a broker account first and deposit the shares in it.
    One of the cheapest for stocks and shares ISAs is https://www.squaregain.co.uk which charges only 25 pounds a year.

    The charges you would incur are 2 X 12.50 for the sale and purchase plus 1X 0.5% stamp duty on the repurchase for each share.

    It's not clear to me that there is much of an advantage to you in putting these shares in an ISA if you are a basic rate taxpaper, because the value is nowhere near your annual capital gains tax allowance of 9k, and if you are a basic rate taxpayer, you pay no tax on the dividend income anyway.

    If it were me, I'd use the ISA allowance for something else and leave the shares as they are.
    Trying to keep it simple...;)
  • Thanks very much EdInvestor, I'll do that
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