Stocka ans Shares ISA for proceeds of an employess share scheme

Reytons123

Hi All...my son is paying into his employers share save scheme direct via salary. His gain is likely to be significantly above £3k and I understand a stocks and shares ISA can be used to protect this gain from CG tax; but I'm not clear on the rules exactly and hoping the experts here can help!

The basic sums are that he will have £9k saved on maturity and shares are fixed at £25 in the scheme; so he will buy 360 shares. We are hoping those shares may be worth £75 at that time ( so a gain of £18k and a large CG tax bill should he sell them immediately the scheme matures)

So can he put 266 of those shares into a S&S ISA (266 x £75 = £19950), and if he does, are they protected from CG tax when he sells them?

If yes, can he open a S&S ISA on day 1, put the shares in and then sell the shares on day 2 and pay zero tax?

The remaining shares he can sell across 2 tax years and the gain will be less than £3k in each year.

Thanks...

eskbanker

Yes to each of your questions:

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

kimwp

If he uses a Flexi ISA, to the best of my knowledge, he should be able to sell some of the shares, withdraw the cash and refill the ISA with shares to then sell within the isa, could be useful if the shares remaining exceed the cgt thresholds. (Or he has used up some of his ISA allowance, as I had done when my SAYE scheme matured. Note, some on here were sceptical whether it was allowed.