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Pending SAYE shares. Planning to transfer some into an ISA but have I backed myself into a corner?
vacheron
Posts: 2,364 Forumite
My company SAYE scheme matures in January and I am looking to protect any gains before Mr Sunak potentially points his crosshairs at the CGT allowance in the future!
My wife and I have intentionally kept both our CGT liabilities at zero this year so that we have both of these available.
The issue however lies with the remaining funds after these 2xCGT disposals have been maxed out.
My initial plan was to transfer the remainder into an ISA taking advantage of the 90 day limit so I wouldn't have to "Bed and ISA" the shares (and in doing so realising a taxable gain). I could then immediately sell the shares within the ISA wrapper with no CGT to pay.
The problem with this is that I have already subscribed to an S&S ISA this year, and although this ISA will have a significant amount of allowance remaining, the ISA is held with Vanguard who only seem to permit their funds to be added to ISAs on their platform. I can't open a S&S ISA with someone who's platform allows individual shares to be added to their ISA because I have already subscribed to an ISA in this tax year.... and if I wait until April 2021 to open a new one, the 90 day window for transfers will have elapsed.
I could simply gift more shares to my wife and have her open a new S&S ISA in her name, but I feel that this would not be permitted under the rules as, although the shares would be in her name, the ‘letter of appropriation’ from the scheme to allow the 90 day transfer would probably be in mine.
Can anyone else think of a potential solution to this situation? Failing that we could both wait until April 2021 and use our fresh CGT allowances again, but I had earmarked those for something else!
My wife and I have intentionally kept both our CGT liabilities at zero this year so that we have both of these available.
The issue however lies with the remaining funds after these 2xCGT disposals have been maxed out.
My initial plan was to transfer the remainder into an ISA taking advantage of the 90 day limit so I wouldn't have to "Bed and ISA" the shares (and in doing so realising a taxable gain). I could then immediately sell the shares within the ISA wrapper with no CGT to pay.
The problem with this is that I have already subscribed to an S&S ISA this year, and although this ISA will have a significant amount of allowance remaining, the ISA is held with Vanguard who only seem to permit their funds to be added to ISAs on their platform. I can't open a S&S ISA with someone who's platform allows individual shares to be added to their ISA because I have already subscribed to an ISA in this tax year.... and if I wait until April 2021 to open a new one, the 90 day window for transfers will have elapsed.
I could simply gift more shares to my wife and have her open a new S&S ISA in her name, but I feel that this would not be permitted under the rules as, although the shares would be in her name, the ‘letter of appropriation’ from the scheme to allow the 90 day transfer would probably be in mine.
Can anyone else think of a potential solution to this situation? Failing that we could both wait until April 2021 and use our fresh CGT allowances again, but I had earmarked those for something else!
• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
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Comments
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Open a S&S ISA with another platform that allows shares, and transfer your Vanguard one into it, or at least all current year subscriptions....0
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Thanks (and apologies for the slow response).eskbanker said:Open a S&S ISA with another platform that allows shares, and transfer your Vanguard one into it, or at least all current year subscriptions....
I considered this, but my concern was that the ISA contains Vanguard VLS 60 and 80 funds, so I was wondering if another provider would be happy to take this on?
Would the recipient platform also have to offer these funds, or would they just transfer the "contaner" with no consideration of the contents?• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.0 -
Any mainstream full-service platform (i.e. excluding the likes of Nutmeg who only offer a limited range of proprietary investment products) will accept VLS holdings in specie.1
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