Shares ISA questions.

SurreyNick_2

1. Can I move any of my existing shares into an ISA?

2. When buying shares can I just instruct broker to "place these in an ISA wrapper".

3. Is the limit higher if I buy shares in a single company?

Lansdowne

Someone else wil answer in due course but...
1) No, you would have to sell them and re-purchase. So any gain (!) up to the point of sale would be CGT taxable as usual.
2) If they have such an arrangement, that is what you would do.
3) The limit is £7200 (currently) invested per year, less whatever you pay into a Cash ISA in the same year. I believe dealing charges etc do not count towards the limit.

grumpycrab

SurreyNick wrote: »

1. Can I move any of my existing shares into an ISA?...

The following might be useful to you (just one example)
http://www.h-l.co.uk/our-services/Bed-and-ISA-SIPP

magpiejay

I've searched long and hard for the answer to this question, but still am unsure, so hopefully someone can help:

I know i can only invest £7,200 per tax year in a stocks and shares isa. And all gains are tax free. But if i sell all those shares, and for arguments sake, end up with £10k, does it all stay in the tax-free wrapper?

ie: can i use that £10k now sitting in my ISA account to buy more shares within the ISA wrapper, and realize any gains on those tax free too?

It seems like a simple question, but finding an answer hasn't been easy, which makes me think the answer is no, and 'maximum subscription' means the same for share isas as cash isas.

thanks in advance!

Lokolo

Yes you can as long as the money doesn't leave the S&S ISA account.

lisyloo

Just bear in mind that any cash sitting in your S&S ISA account will not get a great rate.
So fine for a holding place, but long term the return will be poor.

david78

SurreyNick wrote: »

1. Can I move any of my existing shares into an ISA?

2. When buying shares can I just instruct broker to "place these in an ISA wrapper".

You generally set up a share ISA account and then use this to buy shares. These are available from stockbrokers, banks etc. If you have existing shares the account may let you transfer them into your ISA, but they will normally be sold and re-purchased so you will use up some of your allowance. Limit is currently £7200 (less any amount you pay into cash ISA).

deejants

I've just inherited some fairly nominal ammounts of paper shares in several FTSE companies. I'm a regular rate tax payer and plan to hold on to the shares and recieve the dividends rather than sell them. As I understand it there is no benefit in me attmepting to put these into a S&S ISA by a process like bed and ISA, and I am much better off using this years £3,600 allowance (I've used my cash allowance) for investing new money into some investment funds or corporate bond funds. Is that correct?

Thanks in advance for any advice.

noh

deejants wrote: »

I've just inherited some fairly nominal ammounts of paper shares in several FTSE companies. I'm a regular rate tax payer and plan to hold on to the shares and recieve the dividends rather than sell them. As I understand it there is no benefit in me attmepting to put these into a S&S ISA by a process like bed and ISA, and I am much better off using this years £3,600 allowance (I've used my cash allowance) for investing new money into some investment funds or corporate bond funds. Is that correct?

Thanks in advance for any advice.

Yes that would probably be the best course of action.
I use my S+S ISA for holding corporate bond funds and hold shares in a dealing account outside of the ISA. Thereby utilising the income tax benefits of holding bonds in the ISA.

deejants

noh wrote: »

Yes that would probably be the best course of action.
I use my S+S ISA for holding corporate bond funds and hold shares in a dealing account outside of the ISA. Thereby utilisng the income tax benefits of holding bonds in the ISA.

Thanks for the help. So is the income from bond funds tax free when they're held within an ISA? But as a normal rate tax payer you still have to pay normal income tax on equity dividends, whether they're kept in an ISA or not?

noh

deejants wrote: »

Thanks for the help. So is the income from bond funds tax free when they're held within an ISA? But as a normal rate tax payer you still have to pay normal income tax on equity dividends, whether they're kept in an ISA or not?

The interest distribution from Bond funds is paid net of 20% income tax.
This tax is reclaimed from HMRC by the ISA manager and deposited in your ISA account.
The dividend from equities and equity funds is not taxed but instead comes with a tax credit.
Outside of an ISA this tax credit satisfies the tax liabilities of a lower rate tax payer. A higher rate tax payer will owe additional tax.
Inside an ISA you will receive the same amount of dividend. There is no tax to reclaim as none has been paid.

http://www.hmrc.gov.uk/taxon/uk.htm