Investing Shares

sweetmoneysaver

I recently left a company that had a share reward scheme where you buy one share and they gave you one free subject to a minimum holding period. On leaving, I paid the tax bill (as they were withdrawn before the minimum holding period) and now own the shares in a nominee account. They have a single company ISA account facility which I should be able to deposit £5100 in shares from 6th April. They can then re-invest dividends as shares.

My questions are:

As they have to sell the shares and re-buy them back within the ISA, I may get a capital gain as the shares will have risen in value since they were withdrawn from the original scheme. If this is below the capital gain limit I should not be liable. Is this correct?

Are the shares that I buy with the dividends tax free as they are within the ISA and any increase in growth despite the capital gain issue?

Thanks for any help.

david78

As you can only invest £5,100 worth of the shares, there's no chance you will have to pay any CGT tax. Unless you have other shares you are selling too. The allowance is in excess of £10,000 so you only pay tax if your gains exceed this.

You still pay tax on the dividends received. If these are re-invested any capital gains are tax free.

sweetmoneysaver

Thanks David.