Transferred ISA - free shares

Ronaldjames

If you transfer a Cash ISA for a previous year from one provider to a Stocks ISA with a different provider I understand that this will remain in the previous year's Tax Wrapper providing that the transfer is made via the new provider (transfer form etc) i.e. you do not withdraw the cash and transfer the funds yourself. What is the position regarding free shares provided by the new provider - does this contribute towards the current year's ISA or does this fall within the previous year's ISA as I haven't made any purchase of shares myself? Thanks 

wmb194

Ronaldjames said:

If you transfer a Cash ISA for a previous year from one provider to a Stocks ISA with a different provider I understand that this will remain in the previous year's Tax Wrapper providing that the transfer is made via the new provider (transfer form etc) i.e. you do not withdraw the cash and transfer the funds yourself. What is the position regarding free shares provided by the new provider - does this contribute towards the current year's ISA or does this fall within the previous year's ISA as I haven't made any purchase of shares myself? Thanks 

Free shares and cash inducements related to Isas are usually deposited in a taxable GIA and so won't touch the Isa. Which free shares offer are you looking at? The T&Cs will usually tell you where the shares or cash will be deposited.

Ronaldjames

It’s Trading 212 Stocks ISA. They’ve shown the shares within the portfolio but have allocated to the current years ISA allowance, albeit the ISA is for a previous year. 

eskbanker

If you're referring to Trading212's free share offer (directly into the ISA), the MSE S&S ISA article states that its value does count towards your current year allowance, and this is echoed by comments elsewhere from T212, such as:

When you receive a free share in the Stocks ISA, it will affect your allowance. If you create and use an Invest account before a Stocks ISA, then any free shares you receive can be added there.

https://www.reddit.com/r/trading212/comments/1fsxid6/comment/lpnrvay/