Bed & ISA and other S&S ISA?

iFart

Hi 
I wonder if anyone can help?
I currently contribute monthly to an existing Vanguard S&S ISA which has running for a couple of years.
I also hold shares of one particular FTSE 100 company in a X-O nominee share account.
As the dividend income is mounting from the shares and I am about to become a HRT payer, I thought to place the shares in a ISA so I don't have to pay tax on the dividend income.
Can I do this in the same tax year as I continue to contribute to the Vanguard ISA?

eskbanker

No, in order to transfer shares into a S&S ISA you have to sell first, then pay the cash into the ISA and then rebuy within it, although some providers will package this up as a single Bed & ISA process. 

The fact that you'd be contributing new money into the S&S ISA means that you can't do this in the same tax year that you're funding the Vanguard one, as you can only pay into one S&S ISA per tax year.

One option would be to transfer the Vanguard ISA to another provider, which supports shares as well as funds, and move the shares into that too, but worth bearing in mind that in total you're restricted to your £20K annual ISA allowance.

iFart

Thanks @eskbanker
I'll continue to pay into the Vanguard ISA this tax year and then stop.
Next tax year, I'll do the bed & ISA with X-O. And then the following year, pay into Vanguard again.
God knows why you can't pay into multiple S&S ISA's in any one tax year up to the max ISA allowance. Wouldn't exactly be difficult for HMRC to allow that as NI numbers are logged against all S&S ISA's