Shares ISA

rajakumar

Hi,

I have a query on Shares ISA.

Say If I have a company X for 7200 pounds which is the maximum I can hold for the current year. If company X comes with a right issue this year, what will happen?

Can I subscribe to the issue? Will my new shares will be held under my ISA account or do I need to open another shares account to transfer the shares I recieve through rights?

Thanks in advance.

barak

You certainly wouldn't be able to subscribe cash in excess of the annual allowance to the Rights Issue and add the new shares to your ISA.

There are various other possible options - such as selling enough of your existing holding to take up your Rights within your ISA - but whether you can take advantage of them will, in my experience, depend on your ISA manager, who will contact you explaining exactly what they are offering.

EdGasket

..or you can simply sell the rights

barak

EdGasket wrote: »

..or you can simply sell the rights

Possibly - assuming it is an option offered by your ISA manager, as you won't receive any documentation from the company.

It could even be the only option, as the ISA manager might not want the hassle of offering alternatives to their 'nominee' holders.

Recently, holders of shares in the Santander Corporate Nominee service were denied any choice at all in Santander's Rights Issue.

rajakumar

EdGasket wrote: »

..or you can simply sell the rights

If there is an option to sell. Can I can invest them outside my shares ISA?