Share Isa questions

mort58

See below post..

mort58

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?

eskbanker

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.

mort58

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