Transferring from a Sharesave to an ISA/LISA

Muhren

I have a Sharesave that is due to mature in October, and as it stands I will have around £25k worth of shares.

This will be the first time I haven't bought and kept the shares in the company scheme.I would like to transfer them over into an ISA/LISA, I currently have a S&S LISA with AJ Bell, but would need to open a S&S ISA.

I have a couple of questions, could I transfer over 20K worth of shares and put 16k into the ISA and 4k into the LISA, or would I have to transfer over the full 25K? If I had to do the latter, I assume that the 20k going into ISA/LISA wouldn't be liable for capital gains, when I came to sell them, but the 5k would, if this is over the 3k capital gains tax free allowance?

masonic

You have to transfer them into an ISA within 90 days, so the maximum you will be able to transfer is £20k less any ISA allowance you have already used. However, there is a potential loophole whereby you could open a flexible S&S ISA, transfer in £20k, sell £5k, flexibly withdraw this, then transfer in the final £5k. Note that most S&S ISAs aren't flexible, but there are a few around. I don't believe anyone has tried this yet and reported the results. TBH, having £5k unwrapped until the next tax year is not too bad from a tax perspective.

I am not aware of the ability to transfer in to a LISA.

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

Muhren

Posted this and then went out and forgot about it over the weekend, thank you for the info