Transferring shares from an employers share plan into an ISA

eranou

Hi

I have a share plan with my employer CAPITA that started in 2010 at an option price of £7.02. it is due for maturity in october.

Can these shares be transferred into a stocks & shares ISA if I take up the purchase option?

IronWolf

Sort of. If you transfer them to the ISA provider in the first instance, then they can 'bed' them into an ISA, which means they simultaneously sell them and buy them back at the same price inside the ISA. It incurs transaction fees and realises any capital gains taxes that are due on them.

Better to check with the ISA provider beforehand whether they have this 'bed' function as not all do, but all will accept transfers in of shares to a normal account.

Vortigern

Normally yes, you can transfer shares from an employee sharesave plan into an ISA within 90 days of acquiring the shares. IIRC this does not require Bed and ISA, or sale and re-purchase, and will not give rise to a CGT liability. You can transfer shares up to the current ISA limit. Check HMRC's website for the rules.

http://www.hmrc.gov.uk/isa/faqs.htm#19