Capital Gains Tax Allowance and stocks

adwils

i have a shre in an ISA at a loss.

Can I transfer that share out of the ISA to a general trading account, sell them and use the realised loss to reduce other gains in the general account?.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81870551#Comment_81870551

You cannot transfer anything other than cash out of the ISA wrapper.

adwils

ive done a share transfer from ISA to trading account using interactive investor

EthicsGradient

https://forums.moneysavingexpert.com/discussion/comment/81870562#Comment_81870562

What ii did for you was sell some shares in the ISA, transferred out the money, and bought some shares (probably not the same number - it depends on if there were any charges, and what the spread of the buy/sell price was) in the same stock in your trading account. For tax purposes, what you did was buy some shares in your trading account. You need to keep a record of this, in case you ever sell them.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81870562#Comment_81870562

You may want to check for contract notes. You may just have sold in the ISA transferred cash and bought in the trading account. If you did that the loss you were hoping to move from the ISA to the trading account is still in the ISA (as a realised loss).

masonic

https://forums.moneysavingexpert.com/discussion/comment/81870562#Comment_81870562

Then you did not do the transfer, ii did. An ISA manager is permitted to transfer investments from an ISA to the account holder or their nominee. This re-registration of the assets by the ISA manager is treated as a disposal and reacquisition at the current market price. At that point there will be zero capital gain or loss to crystallise.

I can't think why anyone would do this voluntarily. But the ISA manager may need to do this when there is a breach in the ISA rules and HMRC instructs that assets must be removed to "repair" an ISA, when an investment becomes ISA-ineligible, or when an ISA is cancelled in the cooling off period.

adwils

ok, understand.

I was looking at a way to offset cgt using an ISA capital loss.

Won't work then. Just have to slowly sell trading funds to keep within allowance. Should only take 15 years.

Checked contract notes - no mention of transfer in either trading or ISA. Looking at trading transactions for fund there's just a transfer confirmation of the number and no cost information noted.