iWeb > How To Sell Funds in My GIA ( Then Transfer and Re-buy Within My ISA

scoot65

I have a GIA and S&S ISA via iWeb. Up to this point I've only ever bought, never sold.

I would would like to sell shares  and then transfer the money to my S&S ISA so that I can rebuy within the ISA tax wrapper 

In the GIA I have HSBC GS (Bal) Inc and in the S&S ISA I have HSBC GS (bal) Acc.

According to iWeb the latest available price for the HSBC GS (bal) inc is GBP 1.9060
I also have £1128 dividend payment sitting 'ready to trade'

So, in order to get £20k I'll need to withdraw the £1128 cash and sell £18872 worth of shares. To get the correct number of shares to sell is it a case of £18872 ÷ 1.9060 which gives me 9901.36 

When go into the trade window on iWeb it has the total number of shares I'm holding in the GIA, do I simply type in 9901 to sell £18872 worth?

According to iWeb web chat,  I can't do bed and ISA because I'm selling funds 

aroominyork

The price changes daily and if you sell 9901.36 units you will probably end up with a bit more or less than £18,872. I expect iWeb gives the option to state the amount you want to liquidate, so you can tell it to sell £18,872 worth of units (allow for any trading costs) and then you will have £20,000 to transfer.

ColdIron

scoot65 said:

To get the correct number of shares to sell is it a case of £18872 ÷ 1.9060 which gives me 9901.36

Yes

When go into the trade window on iWeb it has the total number of shares I'm holding in the GIA, do I simply type in 9901 to sell £18872 worth?

Or 9901.36 if you want

According to iWeb web chat,  I can't do bed and ISA because I'm selling funds

Bed and ISA is just a term for selling outside an ISA and re buying within an ISA, some platforms automate this for you. But you can't do this because the fund you want to buy is different to the one you're selling (Inc/Acc)

Edit: As aroominyork says, I'd sell a bit more to cover the £5 and any small movement at the next valuation

ColdIron

aroominyork said:

The price changes daily and if you sell 9901.36 units you will probably end up with a bit more or less than £18,872. I expect iWeb gives the option to state the amount you want to liquidate, so you can tell it to sell £18,872 worth of units (allow for any trading costs) and then you will have £20,000 to transfer.

IWeb don't do this, you have to specify a quantity

scoot65

Many thanks for the replies, much appreciated. Good to have confirmation that I was on the right track!

A quick question about tax implications:-

I'm aware that I can earn up to £2K of dividends each tax year before paying tax (they're taxed at 0% / nil rate). As well as this tax year's £1128 dividend payment sitting in cash in the GIA, my overall profit on the funds in my GIA currently is 11.87% is any CGT due on this amount at point of sale?

My financial background is that I retired early from work a year ago, I'm not claiming a pension yet (using savings to live off at the moment). My only income is interest from my savings accounts and dividend payments from the funds in my GIA, and of course my S&S ISA acc funds.

   

eskbanker

scoot65 said:

my overall profit on the funds in my GIA currently is 11.87% is any CGT due on this amount at point of sale?   

CGT liability is based on your chargeable gain in £ terms rather than %, but if you dispose of assets at £18,872 after 11.87% growth then that would suggest a gain of about £2K, which is below the annual threshold for paying CGT.

ColdIron

scoot65 said:

I'm aware that I can earn up to £2K of dividends each tax year before paying tax (they're taxed at 0% / nil rate). As well as this tax year's £1128 dividend payment sitting in cash in the GIA

As eskbanker says, your capital gain is covered by this year's £6,000 CGT 'allowance' though it reduces to £3,000 next year

However the dividend 'allowance' is only £1,000 this year, falling to £500 next year, and as your dividends seem to have arisen in this financial year you have a potential £128 liability

My financial background is that I retired early from work a year ago, I'm not claiming a pension yet (using savings to live off at the moment). My only income is interest from my savings accounts and dividend payments from the funds in my GIA

You have an annual Personal Allowance of £12,570 which with any luck will cover both your savings interest and the above dividends without having to make use of the dividend allowance as the PA is always used first. Be aware that you cannot use the PA for capital gains as it is a different regime to income tax

So it looks like you are OK for this year but this could all change once you take an income from your pension so do keep accurate records of savings interest, dividends and capital gains

scoot65

Again, many thanks for the replies and good explanations.

I'll do as you suggest ColdIron and I'll make sure to record all savings interest, dividends and capital gains.

Regarding my dividends, I receive dividend payments each June and December, the £1,128 figure relates to this June's dividend payment and I'll also be receiving another dividend payment in December.

So does this look like I'll have tax liability for £128 of June's dividend payment and all of the coming December's dividend payment?
Also how do I pay this tax, as I no longer work so have no PAYE etc?

Thanks again.   

ColdIron

scoot65 said:

Regarding my dividends, I receive dividend payments each June and December, the £1,128 figure relates to this June's dividend payment and I'll also be receiving another dividend payment in December.

So does this look like I'll have tax liability for £128 of June's dividend payment and all of the coming December's dividend payment?

As I say above

ColdIron said:

You have an annual Personal Allowance of £12,570 which with any luck will cover both your savings interest and the above dividends without having to make use of the dividend allowance as the PA is always used first.

If your savings and dividend income is less than £12,570 they will be not be taxed. In the case where the Personal Allowance does not cover them you have in the dividend allowance in addition to it

Is your savings interest more than about £11,300? If not it looks like you are OK

scoot65

ColdIron, thanks for reply. I've got it now! 
My savings interest and dividend income are well below the figures you stated so I'm definitely OK. 

Thank you.