Clarification on ShareSave maturation options

milton1970

Economic wrote: »

Do you have a source for your dubious assertion that makes no sense whatsoever? It is inconsistent with the example here:
https://www.bdo.co.uk/en-gb/insights/tax/global-employer-services/save-as-you-earn-share-option-plan

Apologies - looking again ... I have been given some bad advice by an IFA !

Having read my company info - any CGT liability is due on gains / losses based on the granted option price should the holder sell post exercise but can avoid by managing within annual CGT exemtion limit.

M

Kestril

Hi,

Im just bumping this with another ISA related question on this.

I opened a FLEXIBLE cash isa with my bank recently and deposited £10,000.

My plan was to withdrawn this £10,000 and open a FLEXIBLE stocks and shares isa later this year. I would then deposit £20,000 worth of shares from my sharesave scheme into this new isa without my limit being breached,.

is this possible?

Eco_Miser

Kestril wrote: »

Hi,

Im just bumping this with another ISA related question on this.

I opened a FLEXIBLE cash isa with my bank recently and deposited £10,000.

My plan was to withdrawn this £10,000 and open a FLEXIBLE stocks and shares isa later this year. I would then deposit £20,000 worth of shares from my sharesave scheme into this new isa without my limit being breached,.

is this possible?

Do NOT withdraw money from an ISA (unless you want to spend it). Instead, open the new ISA and have them transfer the £10k from the old ISA, thus maintaining its tax-free status.
Further, if you've paid any money into an ISA since 5th April 2019 you cannot pay £20k into an ISA until 6th April 2020. Smaller amounts giving a total of £20k or less are possible.

I presume FLEXIBLE is a brand name of your bank's ISA offering.
Other platforms are available, and probably cheaper.

eskbanker

Eco_Miser wrote: »

Do NOT withdraw money from an ISA (unless you want to spend it). Instead, open the new ISA and have them transfer the £10k from the old ISA, thus maintaining its tax-free status.
Further, if you've paid any money into an ISA since 5th April 2019 you cannot pay £20k into an ISA until 6th April 2020. Smaller amounts giving a total of £20k or less are possible.

I think this is missing the point of what OP is trying to achieve - they want to get £20K worth of matured sharesave shares into an S&S ISA, specifically via ISA flexibility.

Eco_Miser wrote: »

I presume FLEXIBLE is a brand name of your bank's ISA offering.

No, I believe that OP is referring to the specific attributes of certain ISAs, as explained at https://www.moneysavingexpert.com/savings/flexible-ISAs/

These rules do permit current year contributions withdrawn from one ISA type to be replaced in another:

Remember, flexibility works on three types of ISAs: cash ISAs, innovative finance ISAs and cash held in a stocks and shares ISA. If you withdraw current year's cash from one type, you are allowed to replace it in another type, eg, withdraw from a cash ISA, replace in an innovative finance ISA.

However, it's not clear to me that shifting £20K worth of matured sharesave shares into a S&S ISA would be acceptable, given the specific reference to cash held in a S&S ISA - perhaps someone with more patience than me can wade through the actual rules at the likes of https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors!

Eco_Miser

eskbanker wrote: »

No, I believe that OP is referring to the specific attributes of certain ISAs, as explained at https://www.moneysavingexpert.com/savings/flexible-ISAs/

Ah, yes. I'd forgotten that type of ISA.

Kestril

Thanks for that .gov link.

It seems the below paragraph states I can replace cash ISA with stocks and shares from a shareasve and not go over my annual limit....?

Replacement subscription can be made in cash or by shares transferred from a schedule 3 SAYE option scheme or a schedule 2 SIP (see subscription by transfer of shares).

Flexible ISA withdrawals are deemed to be firstly of current year subscriptions, and secondly of previous year funds. Replacements are deemed to be firstly of previous year funds, and secondly of current year subscriptions. Where subscriptions and withdrawals are processed on the same day, a net end of day position may be used where the manager’s system is unable to track the exact time of each transaction.

Managers do not need to establish or record whether a replacement subscription relates to current or previous year subscriptions (or any related income or growth).

Withdrawals of current year subscriptions, can effectively be replaced in any current year ISA, but cannot breach the ‘one ISA of each type per tax year’ rule.

BudgetBoy

Hi
To avoid starting a new thread and because my situation is so similar to the OP I thought I'd tag on here.


My sharesave matures next month and will have made £31K profit (£30K invested over 5 years and currently worth £61K at todays share price).


My plan is to use the option to move £20K into my Hargreaves ISA within 90 days. I assume this doesn't count as selling then buying back for CGT reasons?
It also seem quite confusing as I downloaded a form from HL and it asks how many shares I want to transfer - but surely this will move up or down depending on the value on the day of transaction?


I then need approx. £22K to pay off my mortgage so I assume I'm best of selling these through equiniti service.


This would then leave £19K or thereabouts which I could wait until the next tax year in April to sell as I'm in no rush and confident the share price will be around where it is now.


I do self assessment tax returns so how would this be captured on there as I would be staying within my £12K CGT limit this year and next tax year?


Any advice appreciated.