Bed & ISA

curtis122

I have emailed my investment company I use to ask this question but I'm doing some planning and they can take a few days to reply so wondered if anyone knew.

I have a standard fund and share account, I'm planning on using the Bed & ISA option to shift some into my ISA next tax year to move some but I read somewhere (can't find it again now) that I think said I could use the Bed & ISA option to sell/rebuy shares in my husbands ISA stocks & Shares account. Can you do this?

eskbanker

Effectively yes, in that Bed & ISA is simply a way of packaging three separate activities, i.e. sell unwrapped shares, move the cash into the wrapper, and finally repurchase the shares within the wrapper, so there's nothing stopping you/him from doing all these individually and making sure that the cash is paid into his ISA in the middle step, even if this needs to be done via a current account rather directly within the platform.

curtis122

I understand I could do it manually so does it mean that's what I would have to do and the Bed & ISA option can only be used with your own accounts. The reason I ask is by using the Bed & ISA option you save a bit on fees on one side.

eskbanker

curtis122 said:

I understand I could do it manually so does it mean that's what I would have to do and the Bed & ISA option can only be used with your own accounts. The reason I ask is by using the Bed & ISA option you save a bit on fees on one side.

It's up to the platform really, so you'll just need to wait until they get back to you, although if you name them on here (HL?) then you might find that someone will be able to relay some personal experience.

curtis122

It is Hargreaves Landsdown. :-)

curtis122

If anyone is interested, I've heard back. To do this I have to 'Gift' my shares to my Husband into a standard share & account he must hold and thats linked to my account. I  then have to contact them to say what Shares I'm gifting him and they do the rest.

Fuzzie

When using the Bed and ISA process, during the selling part of the procedure, does Capital Gains tax rear it’s ugly head?

Keep_pedalling

curtis122 said:

If anyone is interested, I've heard back. To do this I have to 'Gift' my shares to my Husband into a standard share & account he must hold and thats linked to my account. I  then have to contact them to say what Shares I'm gifting him and they do the rest.

Would it not be easier and quicker just to sell them and give the cash to your husband to fund his ISA?