Stocks and Shares isa

Kittykitty49

Hi can anyone help me, I’ve put my allowance in my cash isa for this year £20000

But I have a company’s sharesave maturing in December can I transfer these shares into the new stocks and share isa without selling the shares IE keep the shares in there untill I sell in the new tax year , I don’t want to pay capital gains 
it’s very confusing what I read 
please help 

MeteredOut

No, you've already used your £20K allowance for this tax year so you can't add any "new" assets, which is what your sharesave shares would be.

If your current ISA was a flexible S&S ISA containing cash, there is a bit of a dubious loophole/workaround where, theoretically, you can remove the £20K and replace it with the shares from your sharesave account, but it very much goes against the spirit of the rules and who knows whether HMRC might one day suggest doing so crossed the line.

Kittykitty49

Yes my isa is flexible 

I assumed I could open a share account IWEB it is and place the shares in there within the 90 days of maturity 

MeteredOut

Kittykitty49 said:

Yes my isa is flexible 

I assumed I could open a share account IWEB it is and place the shares in there within the 90 days of maturity 

You have a £20K allowance every tax year, and you've already used that this year. Moving your sharesave shares over into a new S&S ISA would count as a new investment.

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

If you wanted to risk what I stated above, you could transfer your £20K cash ISA into a flexible S&S ISA that also accepts in-specie sharesave transfers, remove the £20K cash and then transfer the sharesave shares.

kimwp

Double check that the company for your flexible ISA will accept the share save shares directly into your ISA.

eskbanker

MeteredOut said:

No, you've already used your £20K allowance for this tax year so you can't add any "new" assets, which is what your sharesave shares would be.

If your current ISA was a flexible S&S ISA containing cash, there is a bit of a dubious loophole/workaround where, theoretically, you can remove the £20K and replace it with the shares from your sharesave account, but it very much goes against the spirit of the rules and who knows whether HMRC might one day suggest doing so crossed the line.

In what sense does it go against the spirit of the rules?

The withdrawal of current year subscriptions from a flexible ISA automatically reduces the net subscription to that ISA meaning that additional subscriptions can be made to other ISAs (flexible or non-flexible) in the remainder of that tax year.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#flexible-isas

There is a separate loophole/workaround involving moving more than £20K of sharesave shares into a flexible ISA, which is much more dubious, but withdrawing cash and subscribing shares, ensuring that the aggregate net subscription is within the £20K over the year, seems OK to me?