Quick question(s) about shares and ISA

Box

Hello all. I have a S&S ISA which I pay £100 a month into, (£1200 a year),
I have £4000 worth of AIM shares (duel listed), which are held in my sharedealing account with a different provider (and not yet in an ISA),

Can I place my existing £4000s worth of shares into an ISA this year? or does it have to be either shares or funds? And finally, does it have to be with the same provider?

Any replies will be greatly appreciated.

masonic

You can hold shares and funds in the same S&S ISA. Several providers will allow mixed investments, although it's harder to find a provider who is competitive on charges for both the funds and shares if you do it this way. If you wanted to, you could open a second S&S ISA so that you could hold funds in one and shares in the other (with the obvious limitation of contributing to one S&S ISA per tax year).

noh

Can I place my existing £4000s worth of shares into an ISA this year?

No.
You will have to sell and then repurchase the shares within the ISA after subscribing the cash to the ISA.

http://www.hmrc.gov.uk/isa/faqs.htm#20

Box

Just what I was after, thank you both for the replies.

gadgetmind

Box wrote: »

Can I place my existing £4000s worth of shares into an ISA this year? or does it have to be either shares or funds?

No, you'll have to "Bed and ISA" the shares, which means selling and buying again within the ISA wrapper. You need to consider capital gains tax, stamp duty, dealing fees and bid/offer spread when deciding whether to go ahead. Some providers may waive dealing fees for this, and some may also be able to do a matched trade to avoid the bid/offer spread, but I understand that this is usually just for larger trades.

I note you mention the shares are dual (not duel!) listed, so presumably can be held in an ISA, but do check.