Minimise tax / cost for Sharesave

Lifes_Grand_Plan

Hi everyone,

My wife has been putting £500 per month into her company ShareSave scheme for the last 3 years so has an option price of £18k coming up. The shares have currently appreciated and are worth about £27k.

We'd like to sell the shares and get the money into our S&S Isas to get it diversified as the share price can be quite volatile. I think she could transfer the shares into her ISA on maturity and sell them from there but with it being over £20k then I guess that wouldn't be possible as it'd be over her allowance?

So can she transfer some of the shares in (up to £20k) and either put the rest into my ISA or sell them outside of the ISA which I guess would attract tax but less than selling the full amount outside of it?

Any other options or ideas that could help please?

TIA for any help

masonic

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

She would only be able to transfer £20k in a single tax year (assuming she's not used any of her allowance already). I do not think she can transfer shares into anyone else's ISA.

Ideally maturity would be within 90 days of the end of a tax year, then the transfer could potentially be spread over two tax years.

Lifes_Grand_Plan

masonic said:

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

She would only be able to transfer £20k in a single tax year (assuming she's not used any of her allowance already). I do not think she can transfer shares into anyone else's ISA.

Ideally maturity would be within 90 days of the end of a tax year, then the transfer could potentially be spread over two tax years.

Thanks for the useful link. What I can't tell from that link or anywhere else is whether she split the shares to allow partial (£20k) transfer within her allowance, or is it an "all or nothing" type arrangement?

masonic

Lifes_Grand_Plan said:

masonic said:

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

She would only be able to transfer £20k in a single tax year (assuming she's not used any of her allowance already). I do not think she can transfer shares into anyone else's ISA.

Ideally maturity would be within 90 days of the end of a tax year, then the transfer could potentially be spread over two tax years.

Thanks for the useful link. What I can't tell from that link or anywhere else is whether she split the shares to allow partial (£20k) transfer within her allowance, or is it an "all or nothing" type arrangement?

She can transfer up to £20,000 worth of the shares into her ISA.

DRS1

There is a thread on here somewhere with a clever plan using a flexible ISA.  I will see if I can find it

DRS1

Clarification needed on 90 day SAYE shares to ISA transfer. — MoneySavingExpert Forum

This is the one.  Not clear if anyone has actually done it.

masonic

Seems to be untested, and relies on the provider treating a share transfer as a replacement subscription.

OP if your wife tries this please report back.