Existing shares into stocks and shares ISA

flo999

Can I put shares in a company which I hold certificates for and have held a long time in a stocks and shares ISA? If so, I presume it is worth going to minimise Capital Gains Tax?

Stubod

....yes. I think you can..and it certainly makes sense from a tax point of view

JoeCrystal

I believe you transfer them into standard share nominees account and then you/broker sell them in order to transfer them and purchase them within S&S ISA. I have no idea if that incur CGT though!

Cheers,
Joe

bigadaj

JoeCrystal wrote: »

I believe you transfer them into standard share nominees account and then you/broker sell them in order to transfer them and purchase them within S&S ISA. I have no idea if that incur CGT though!

Cheers,
Joe

It would trigger an event that would potentially incur capital gains but so long as you are below the annual limit, currently around ten grand, then there's nothing for you to pay. If its more than this then it might be better to only do this in stages annually.

MoneySaverLog

bigadaj wrote: »

It would trigger an event that would potentially incur capital gains but so long as you are below the annual limit, currently around ten grand, then there's nothing for you to pay. If its more than this then it might be better to only do this in stages annually.

£10,600 CGT allowance is the profit part once sold, given the ISA subscription allowance of £11,520 it's unlikely unless gains were made elsewhere in the year, as you also can take off what you paid for the shares in the first place.

grey_gym_sock

it will cost you to "bed and ISA", so the exercise may or may not be worth it. compare the (1-off) costs with potential future savings in income tax and CGT.

do the shares pay dividends, and if so, do you pay higher-rate tax on them? as you'd save the higher-rate tax in an ISA.

do you pay CGT every year, or are you likely to pay it in the future? would you pay any CGT if you sold your entire portfolio now? are you likely to need to sell (part of) your portfolio in 1 go?

redbuzzard

Grey Gym Sock is right. I bed-and-ISA-ed some shares last year and I was surprised to see how much it cost in the price difference with HL. I didn't need to do it from a tax point of view, I was just tidying up, so I was quite annoyed with myself.

CLAPTON

depends upon the details.

how much are the shares worth?
is there already a capital gain?
what divi do they pay?
what's your current tax rate?

basically you sell them and then rebuy in the ISA so there are obvioulsy some costs.

if you are holding for a long time it might be worthwhile and it does mean they don't have to be declared tax wise