do i sell my ETF funds not in ISA to add them to new isa?

DjangoUnchained

For the last few years I have always taken out a fixed term cash isa for each year. Beginning the next tax year I want to take a Stocks and shares isa probably with trading 212. Knowing I have reached my isa allowance for this year with the fixed rate cash isa , I have opened a 212 account and bought some etf funds but not put them in the isa account just a trading account.  When the new tax year starts can I transfer these funds into an isa or do I need to cash them out and rebuy them within the isa? Hope this makes sense.

wmb194

DjangoUnchained said:

For the last few years I have always taken out a fixed term cash isa for each year. Beginning the next tax year I want to take a Stocks and shares isa probably with trading 212. Knowing I have reached my isa allowance for this year with the fixed rate cash isa , I have opened a 212 account and bought some etf funds but not put them in the isa account just a trading account.  When the new tax year starts can I transfer these funds into an isa or do I need to cash them out and rebuy them within the isa? Hope this makes sense.

You’ll have to sell them, transfer the money to the ISA (easy with T212) and then repurchase them. It’s known as, ‘bed and Isa.’

DjangoUnchained

thank you.

Alexland

DjangoUnchained said:

thank you.

It would the same with any provider you can only contribute cash to ISAs except under certain employer share save scheme conditions.

DjangoUnchained

I presume when i sell the funds i have to declare any profits made?

wmb194

DjangoUnchained said:

I presume when i sell the funds i have to declare any profits made?

If you're above your annual £3,000 CGT allowance, yes, but bear mind any other capital gains and losses you make with other investments. 

If you haven't used it this year you could sell some (half?) of your funds before the end of this tax year and then the remainder at the be beginning of the next tax year so you could easily cover £6,000 CGT free.

DjangoUnchained

wmb194 said:

DjangoUnchained said:

I presume when i sell the funds i have to declare any profits made?

If you're above your annual £3,000 CGT allowance, yes, but bear mind any other capital gains and losses you make with other investments. 

If you haven't used it this year you could sell some (half?) of your funds before the end of this tax year and then the remainder at the be beginning of the next tax year so you could easily cover £6,000 CGT free.

im only in the hundreds for this, not thousands.