bed and ISA, including gifting shares to spouse

a_t_jackson

I'm fortunate to own a significant number of shares in public company, currently held as single certificate!in my name only on a share trading platform.! They are not part of a SIPP.

To reduce dividend and Capital Gains Tax liability I'm hoping I can bed and ISA these shares over a series of tax years, and also gift some to my wife.

My understanding!of HMRC rules is that:
- 'Transferring' shares to spouse is the same as 'gifting; in terms of tax liability
- I can transfer/gift any number of these shares to my wife.!I will need to complete a CREST form with current holder of share certificate to enable transfer of shares to my wife, or to an S&S ISA.!!
- My wife will not need to not need to pay stamp duty nor CGT when receiving the transferred shares!but both of us will need to pay stamp duty if we bed and ISAs any shares.!
- To avoid CGT my wife and I can each only bed and ISA shares up to the CGT threshold, currently £12,000/year, but we can both repeat this over several years to gradually move all the shares into S&S ISAs without incurring CGT.!!
- Neither of us would be able to invest in another S&S ISA in same tax year as we bed and ISA the shares, but would we could make further investments into the same S&S ISA.
- Neither my wife nor I need to notify HMRC about any of the above if we keep below the CGT and ISA allowance thresholds.!

Could someone confirm if my understanding above is correct?

If so, does anyone have any recommendations for a good S&S ISA provider for this approach?!!

Neither of us will be actively trading shares but would like to make regular monthly savings (~£200) into our S&S ISAs, for example into to an investment fund.!I already have a S&S ISA with Halifax holding shares transferred from a SIPP.! They charge a flat annual fee of £12.50 but their options/fees for regular investment confuse me.! I don't see option with them to regularly top-up investment in a single fund, or if so what the fees might be.

Many thanks

Tom99

a_t_jackson wrote: »

I'm fortunate to own a significant number of shares in public company, currently held as single certificate!in my name only on a share trading platform.! They are not part of a SIPP.

To reduce dividend and Capital Gains Tax liability I'm hoping I can bed and ISA these shares over a series of tax years, and also gift some to my wife.

My understanding!of HMRC rules is that:
- 'Transferring' shares to spouse is the same as 'gifting; in terms of tax liability
- I can transfer/gift any number of these shares to my wife.!I will need to complete a CREST form with current holder of share certificate to enable transfer of shares to my wife, or to an S&S ISA.!!
- My wife will not need to not need to pay stamp duty nor CGT when receiving the transferred shares!but both of us will need to pay stamp duty if we bed and ISAs any shares.!
- To avoid CGT my wife and I can each only bed and ISA shares up to the CGT threshold, currently £12,000/year, but we can both repeat this over several years to gradually move all the shares into S&S ISAs without incurring CGT.!!
- Neither of us would be able to invest in another S&S ISA in same tax year as we bed and ISA the shares, but would we could make further investments into the same S&S ISA.
- Neither my wife nor I need to notify HMRC about any of the above if we keep below the CGT and ISA allowance thresholds.!

Could someone confirm if my understanding above is correct?

If so, does anyone have any recommendations for a good S&S ISA provider for this approach?!!

Neither of us will be actively trading shares but would like to make regular monthly savings (~£200) into our S&S ISAs, for example into to an investment fund.!I already have a S&S ISA with Halifax holding shares transferred from a SIPP.! They charge a flat annual fee of £12.50 but their options/fees for regular investment confuse me.! I don't see option with them to regularly top-up investment in a single fund, or if so what the fees might be.

Many thanks

Halifax charge £2 for a regular investment and you can also use what they call a one off regular investment to make the initial purchase when you bed and ISA.
Remember the £12,000 CGT allowance is the gain not the price you sell for.

a_t_jackson

Thanks Tom99

Keep_pedalling

You can dispose of more than £12,000 of shares, it is the profit the allowance is based on not the sale price.

Having a large holding in a single company is high risk, I would look at disposing the maximum possible up to your annual allowance and invest in a fund with good global diversity rather than B&I into the same shares.