Clarification needed on 90 day SAYE shares to ISA transfer.

vacheron

jimjames said:

vacheron said:

I wouldn't go so far as to say that it benefits the "wealthy". Due to the recent ridiculous cuts in the CGT allowance, the receptionist at our company who put aside just £100 per month for 3 years and amassed £3,600 in shares would now be liable to CGT when she sold them if they went up by more than just 45% in those 3 years (assuming the company applies the full permissible 20% discount (which our company always does). 

Although she wouldn't pay any CGT by moving them into an ISA as it would still be well within the £20k ISA limit. I'd suggest as such it is the wealthy that would benefit from multiples of £20k being put through an ISA each year as I suspect the average person on the street would think that you'd be rich with that sort of amount. 

You are quite correct. The point I was attempting to make (probably not very well in hindsight), was that I feel that something has gone wrong in the GCT system whereby an employee putting £100 per month into a 3 year company SAYE scheme is at risk of triggering a CGT charge if their SAYE shares rose by less than 50% over 3 years requiring them to be aware how to calculate their gains and then utilise tax efficient wrappers.

GCT has always generally been considered a "wealthy person's tax", requiring 5 figures gains to exceed the allowances. Those previously affected would also generally have the experience and knowledge (or employ other people) to mitigate against such charges if they can. The system as it is now is catching (and penalising) those who know little about the tax system and who have only invested trivial sums over trivial durations. 

vacheron

xcell said:

Did anyone successfully do this this year? Exercise a SAYE and pay more than 20K through a flexible ISA in chunks?  

Not from my side, however my colleague's 3 year scheme is due to mature in just under a year, so he will be our company guinea pig.

I'm in the 5 year scheme, so have a further 2 years to wait. 

JamTomorrow

Successfully transferred into the Equniti Flex ISA at the beginning of December, with the balance >£20k in my Equiniti trading account.  Haven't yet sold out of the ISA to then replenish from the trading account, but so far so good.  Transfer took place on the day of maturity, whereas in the past this would have taken weeks to transfer to an ISA with all the manual paperwork.

Poocifer

Barclays Smart Investors also offers a Flexible Stocks and Shares ISA. It's recognised as an "approved" provider at my job where I'm under heightened monitoring, so I don't need to upload any statements etc... 

My plan is to wash all my SAYEs through it, I'm fairly sure it's allowed and I can always disclose in the comment box of my tax return for extra peace of mind. 

It does appear too good to be true, but really, SAYE schemes is the only way I can think of to pass significant capital gains and avoid a charge.

WynterChill1

Any update on this please, anyone successfully managed to put 20K through their ISA, pull it out shortly after and refill...?

idlejack

Great thread. Equitini explain the same way as a previous poster did with Tesco. All seems legit to empty saye over 20k into the ISA, although feels naughty!