Reducing current maxed-out ISAs to open a new one

davnig

Hi,

current situation is that I have 2 ISAs

• Cash - 10k
  
• Shares - 10k

so effectively maxed out for 24/25 tax year currently

My problem is that in Feb 25 I have a company sharesave scheme maturing and the shares have done madly over the option price, basically 500%+ increase ( I know, feel very fortunate), and rise will be more than 3k.

In order not to incur CGT the company advice is to put in ISA.

So my question

• Can I reduce my current holding by withdrawing either from the Cash ISA or Share ISA and that would reduce my ISA holdings to below 20k and could I then open a new ISA for my sharesave options?

Thank you

Ayr_Rage

No.

You have used all your ISA allowance for this tax year.

masonic

As you've fully used your allowance for this tax year, you cannot subscribe to another ISA.

Your only option for this tax year would be if your S&S ISA allows flexible withdrawals and would accept the shares being transferred in, you could flexibly withdraw enough cash that the shares could be regarded as replacement subscriptions. I suspect this won't be an option, but worth checking.

Alternatively you have 90 days to transfer into an ISA, which should take you into the next tax year.

Vortigern

90 days to transfer starts from when you take the shares out of the sharesave scheme, so you could delay taking them out to ensure that 90 days takes you to the next tax year. Another option is transfer to pension.

Rules at following link:

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye

A further option is to transfer some shares to your spouse, to make use of his/her CGT allowance.