First time S&S ISA

jjjona

Hi

I'm looking to open a low fee S&S ISA to stick £50-100 a month or so in and leave it long-term, although the primary reason will be to transfer shares from a company Sharesave scheme in once it matures in a few months. Any recommendations on particular providers that would be best for this please?

MX5huggy

The first half of the Question I would say Vanguard, simple, very low platform fee 0.15%. No trading fees (those add up). Choice of cheap global trackers. 

Second half adds complexity. Do you want to keep these shares? I wouldn’t, you don’t want your “savings” tied up with your employer’s success (after the end of the share scheme). You would need a full market platform if you want to hold these shares or any other single shares, but I wouldn’t want any single shares, sticking to global index trackers. 

ColdIron

For very small amounts and frequent transactions in funds you should look at percentage fee providers with no or low transaction fees. Many platforms have capped fees for shares for your sharesave scheme

Have a look at 'Percentage-fee broker comparison' below

https://monevator.com/compare-uk-cheapest-online-brokers

InvesterJones

MX5huggy said:

The first half of the Question I would say Vanguard, simple, very low platform fee 0.15%. No trading fees (those add up). Choice of cheap global trackers. 

Second half adds complexity. Do you want to keep these shares? I wouldn’t, you don’t want your “savings” tied up with your employer’s success (after the end of the share scheme). You would need a full market platform if you want to hold these shares or any other single shares, but I wouldn’t want any single shares, sticking to global index trackers. 

I guess even if you want to sell them if you transfer them to an ISA first then you can sell them within the ISA wrapper and use the funds for something else, so avoiding CGT.

jjjona

Yeh, that's the plan, to sell them as soon as possible, but within the ISA so to avoid CGT

dunstonh

To be honest, until you get to around £8000, it really doesnt matter who you are with or how you invest.  The differences will by very small.

MX5huggy

InvesterJones said:

MX5huggy said:

The first half of the Question I would say Vanguard, simple, very low platform fee 0.15%. No trading fees (those add up). Choice of cheap global trackers. 

Second half adds complexity. Do you want to keep these shares? I wouldn’t, you don’t want your “savings” tied up with your employer’s success (after the end of the share scheme). You would need a full market platform if you want to hold these shares or any other single shares, but I wouldn’t want any single shares, sticking to global index trackers. 

I guess even if you want to sell them if you transfer them to an ISA first then you can sell them within the ISA wrapper and use the funds for something else, so avoiding CGT.

Is that a special rule for the end of a share scheme? You can’t normally transfer shares to an ISA avoiding CGT. You can use “Bed and ISA” but that sells and buys the shares creating a CGT event. 

InvesterJones

MX5huggy said:

InvesterJones said:

MX5huggy said:

The first half of the Question I would say Vanguard, simple, very low platform fee 0.15%. No trading fees (those add up). Choice of cheap global trackers. 

Second half adds complexity. Do you want to keep these shares? I wouldn’t, you don’t want your “savings” tied up with your employer’s success (after the end of the share scheme). You would need a full market platform if you want to hold these shares or any other single shares, but I wouldn’t want any single shares, sticking to global index trackers. 

I guess even if you want to sell them if you transfer them to an ISA first then you can sell them within the ISA wrapper and use the funds for something else, so avoiding CGT.

Is that a special rule for the end of a share scheme?

I believe so, but haven't researched it much myself. Note it counts as an ISA contribution so contributes to the 20k annual limit for new contributions.

jjjona

MX5huggy said:

InvesterJones said:

MX5huggy said:

The first half of the Question I would say Vanguard, simple, very low platform fee 0.15%. No trading fees (those add up). Choice of cheap global trackers. 

Second half adds complexity. Do you want to keep these shares? I wouldn’t, you don’t want your “savings” tied up with your employer’s success (after the end of the share scheme). You would need a full market platform if you want to hold these shares or any other single shares, but I wouldn’t want any single shares, sticking to global index trackers. 

I guess even if you want to sell them if you transfer them to an ISA first then you can sell them within the ISA wrapper and use the funds for something else, so avoiding CGT.

Is that a special rule for the end of a share scheme? You can’t normally transfer shares to an ISA avoiding CGT. You can use “Bed and ISA” but that sells and buys the shares creating a CGT event. 

From what I have read, you can transfer from a Sharesave without having to Bed and ISA, providing you do so within 90 days of exercising your option on them

xylophone

Is that a special rule for the end of a share scheme?

https://www.gov.uk/tax-employee-share-schemes/transferring-your-shares-to-an-isa

xylophone

'm looking to open a low fee S&S ISA to stick £50-100 a month or so in and leave it long-term, although the primary reason will be to transfer shares from a company Sharesave scheme in once it matures in a few months. 

https://www.ii.co.uk/help/transfers/making-a-transfer/employee-share-plans

https://www.charles-stanley.co.uk/insights/commentary/transferring-saye-shares-isa

https://www.ajbell.co.uk/isa/what-is-an-isa

We will also accept shares acquired through a Save as You Earn (SAYE) or Share Incentive Plan (SIP) provided you have some remaining ISA allowance, the shares are in your name and they are eligible to be held in an ISA. The transfer must be made with 90 days of the exercise of the SAYE option or release from the SIP.