transferring isa's to another person

dje

my mother has a shares isa with OEIC she wants to give it away to my brother. It is worth £34K in total the OEIC part is only worth about £8K. Can she give it away and if so how. Would also appreciate advice as to whether this would cause any problems for the person(adult taxpayer) receiving it. Would also appreciate any thoughts on any other pitfalls there are to to doing this Thanks

Academic

Individual Savings Account........not transferable.

She could sell the investments within the S&S ISA and gift the proceeds but that has possible implications (inheritance tax if she dies within 7 years of making the gift).

dunstonh

Can she give it away and if so how.

She dies which then nullifies the ISA wrapper and the investments become unwrapped. The executor then completes a stock transfer form to change the owner. Obviously death is a small problem with that option.

Or she sells the investments, loses the ISA wrapper and gifts the money as cash to the other person to do as they wish.

thenudeone

The ISA wrapper is specific to the person who took the ISA out.
The ISA is just a tax wrapper on share or fund holding account with a stockbroker. You can usually hold an equivalent account without an ISA wrapper.
If you want the assets to transferred to someone else, your stockbroker / dealer / ISA manager should probably be able to transfer them out of the original ISA into the new holder's name (perhaps into a new ISA in their name) but they would not be in the original ISA any more.