Share Isa questions

edited 26 December 2020 at 7:11PM in ISAs & Tax-free Savings
3 replies 91 views
mort58mort58 Forumite
63 Posts
Part of the Furniture 10 Posts Combo Breaker
edited 26 December 2020 at 7:11PM in ISAs & Tax-free Savings
See below post..

Replies

  • mort58mort58 Forumite
    63 Posts
    Part of the Furniture 10 Posts Combo Breaker
    mort58 said
    Newbie investor question..
    I have a share account and want to open a share isa with the same company.
    I know I can only transfer £20k into the isa but the problem I have is that the £20k transfer would contain a profit exceeding the annual capital gains allowance.
    I am reading something about a bed and isa 30 day rule.
    Am i reading it correctly in that if I carry out this bed and isa under the 30 day rule I will not have to pay capital gains tax on the sale of the shares in the original share account?


  • eskbankereskbanker Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    No, Bed & ISA doesn't circumvent CGT liability on gains already made outside the ISA, so if a £20K transaction would breach your annual CGT allowance then your best bet for CGT avoidance would be to split the transactions across multiple tax years.
  • mort58mort58 Forumite
    63 Posts
    Part of the Furniture 10 Posts Combo Breaker
    eskbanker said:
    No, Bed & ISA doesn't circumvent CGT liability on gains already made outside the ISA, so if a £20K transaction would breach your annual CGT allowance then your best bet for CGT avoidance would be to split the transactions across multiple tax years.
    Good job I checked!
    Thanks


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