Is it worth transferring your shares into a share isa?

JAX_156

If you have shares and want to transfer them into a share isa to take advantage of the £20k allowance per year, then you would have to sell them and buy them back, risk losing money on the deal, pay £100 in tax which is half a percent on the 20k, then buy them back and pay the broker dealing fees on top.

I ask myself what is the point?

 It’s only of benefit to people who bought shares through their employee scheme, where these can be put into a share isa directly without the need to sell and buy back.

 Halifax will soon start charging £36 per year for their investing accounts to include all other accounts held.

 So you can open a share isa at no extra cost.

 Good to put new shares you are going to buy in that, but far from good to transfer shares already owned.

 Disappointing news for the people who just have a share dealing account, which will be no longer for free from April next year.

 

Alexland

JAX_156 said:

I ask myself what is the point?

For those whose unwrapped investments are large enough that they might pay ongoing tax on the dividends or eventually on the capital gains then gradually moving money into a S&S ISA wrapper might be cheaper despite the additional one-off costs. Also holding S&S ISAs mean you don't need to keep as many records to demonstrate that you didn't need to pay tax.

masonic

Yes, the main advantage for me is the reduction in paperwork, admin and planning. I can do what I like within the S&S ISA without considering the tax implications or keeping detailed records of each transaction (which may include corporate actions as well as my own trading).

Some providers offer a Bed & ISA scheme whereby they minimise time out of the market and some only charge one set of trading fees. ISAs have been around for a long time, so many have avoided ever buying in a non-ISA trading account.

Sorcerer2018

For my property funds i pay 20% tax outside the ISA, I am moving them as fast as I can to the ISA, to boost my income by 20%, but it's going to take a few years. Also it simplifies my tax returns, and the more I move in the ISA the less capital gains tax I pay. These far out way the cost of the transfer. 

JAX_156

Thanks guys for your comments and views. It's hard work keeping one step ahead of the taxman.
The taxman giveth and the taxman taketh!  He offers share isa's to help you save then cashes in when you buy back It's so sneaky and hopes that you forget about losing a half a percent on the deal, so it goes much against my instinct to do this. 
 
I'm getting on a bit now and the saving I have are slowly becoming a liability, so I off loaded lots of my shares to my one son. My other son would now pay over 30% on the dividends over £2k so I am keeping hold of his half for now as I am unlikely to get more than £2k in dividends for this year.

Having visited the HMRC website I learnt that I can increase the tax free allowance on the £2k allowance by transferring shares to my wife who isn't working to take advantage and add on her personal income allowance on top of the the £2k allowance.
To do this she would have to open her own account and then I would have to close mine to save paying twice.
Having a joint account would also help to increase the allowance but Halifax do no longer offer these type of accounts.
I recently moved broker to take advantage of the free admin of Share Dealing Accounts  with Halifax as soon as I did that they said they will start to charge from next year, so I will see if I can find an account that better suits me.
Does any one know if there are any brokers who still admin share dealing accounts for free or charge less the the Halifax?
If so please let me know.

masonic

JAX_156 said:

Does any one know if there are any brokers who still admin share dealing accounts for free or charge less the the Halifax?

You could take a look at X-O (Jarvis) who have no ongoing charges. There are some ultra-cheap newer options like Trading212 that might be worth considering also.

JAX_156

Hi Thanks for these suggestions. Halifax wont start charging till April 22 so no rush to move yet.
X_O looks the better do joint accounts so that could be of interest, but charge £15 for transfers not sure if that applies to internal transfers. The Trading2 12 seems to have bad reviews.
I will check further nearer this time.
I'm now trying to find a firm that specializes in setting up a simple trust to put my house that's not too expensive. 
Can anyone recommend a firm?

Keep_pedalling

JAX_156 said:

Thanks guys for your comments and views. It's hard work keeping one step ahead of the taxman.
The taxman giveth and the taxman taketh!  He offers share isa's to help you save then cashes in when you buy back It's so sneaky and hopes that you forget about losing a half a percent on the deal, so it goes much against my instinct to do this. 
 
I'm getting on a bit now and the saving I have are slowly becoming a liability, so I off loaded lots of my shares to my one son. My other son would now pay over 30% on the dividends over £2k so I am keeping hold of his half for now as I am unlikely to get more than £2k in dividends for this year.

Having visited the HMRC website I learnt that I can increase the tax free allowance on the £2k allowance by transferring shares to my wife who isn't working to take advantage and add on her personal income allowance on top of the the £2k allowance.
To do this she would have to open her own account and then I would have to close mine to save paying twice.
Having a joint account would also help to increase the allowance but Halifax do no longer offer these type of accounts.
I recently moved broker to take advantage of the free admin of Share Dealing Accounts  with Halifax as soon as I did that they said they will start to charge from next year, so I will see if I can find an account that better suits me.
Does any one know if there are any brokers who still admin share dealing accounts for free or charge less the the Halifax?
If so please let me know.

How exactly are savings a liability? 

mike_the_bike_2

Inheritance tax I suspect?