Shares already owned. Can I/should I put in a stocks and shares ISA?

wadsleyowl

Hi

I own some paper shares, need to put them in a platform I know, my question is regarding stocks and shares ISA.

Can I, or should I, put these into a stocks and shares ISA wrapper? Haven’t used much allowance this year for my cash isa and know the shares will come into a bit of this. Have a large share save maturing in Q4 so would like to be sorted by then.

Am I right in thinking if I have a stocks and shares isa, I can move my share save into that too when it matures, if I buy the shares? Would this help avoid CGT in future? Want to spend some of the money but would rather hold onto the shares than put in a bank account as the ones I already own have paid much more in dividends than interest would have been over the last 10 years whilst interest rates have been pants.

Dont know the ins and outs of stocks and shares isa as everything is talking about investing using them, but I already own the shares and want to put them somewhere safe. Started looking prior to Covid and then 2020 happened and didn’t get any further. Totally forgot what I was advised to do back then. 

Also when I sell shares in the future, if it’s out of a wrapper does that avoid CGT and presume there are limits for doing this?

Thanks

eskbanker

wadsleyowl said:

I own some paper shares, need to put them in a platform I know, my question is regarding stocks and shares ISA.

Can I, or should I, put these into a stocks and shares ISA wrapper?

You can, which involves selling them (potentially giving rise to a CGT liability) and then repurchasing them within the ISA, a process known as Bed & ISA.

wadsleyowl said:

Am I right in thinking if I have a stocks and shares isa, I can move my share save into that too when it matures, if I buy the shares? Would this help avoid CGT in future?

Unlike the above scenario, maturing sharesave shares can be transferred directly into a S&S ISA, up to the annual allowance.  Once within the ISA then yes, no CGT issues thereafter.

wadsleyowl said:

Also when I sell shares in the future, if it’s out of a wrapper does that avoid CGT and presume there are limits for doing this?

It depends on what you mean by selling 'out of a wrapper'!  If you mean the shares are within a wrapper to start with then no CGT, but if shares are 'out of a wrapper' (as in not inside one) to start with then CGT applies (albeit only actually payable if gains exceed the annual threshold, currently £12,300 but decreasing rapidly in future tax years).