Bed & Isa

all4one

Hi.

Lookng for some advice pls, I previously worked for a large US corporate where I accumalated £75k of shares, now I want to sell them each year to stick into a stack & shares ISA 20k at a time. I understand from an accountant that the price I work from is the day I was made redundant and any profit from that day I need to calculate for tax liabilty.

I think I need to go down the Bed & Isa route but I'm not sure, which is why I'm here - if I do do the ISA company do it all for me (Which company) ? What do I need to do -or am I going about this completely wrong ? Thanks…..

Woodstok2000

Bed and ISA is used where you want to keep the shares in the same company, but move them inside an ISA. Do you want to keep your shares in your old company, or are you looking to invest them in a different company or product?

InvesterJones

A bed and ISA is no different from selling the shares yourself and buying them again within the ISA wrapper, it just means fewer actions on your part (maybe in some cases it's quicker if your platform requires funds to settle before they can be transferred, but equally you might have funds outside you can use to eliminate time out of market).

Check your S&S ISA platform for how to carry it out (if you want to) - usually it's a form to fill in.

eskbanker

What do I need to do -or am I going about this completely wrong ?

Things are rarely as simple as 'right' or 'wrong' when it comes to investing, but holding £75K worth of shares in a single company is very high risk, although this may be mitigated if you have substantial diversified holdings of other companies/sectors/markets/funds - do you?

DRS1

I know it is an American company but did you get the shares under a UK approved share scheme such as an SAYE Scheme?

So did you exercise an option or take shares out (of a SIP) when you were made redundant? If so there may be a window for getting the shares into an ISA (90 days which may have elapsed already) see below

Tax and Employee Share Schemes: Transferring your shares to an ISA - GOV.UK

DRS1

This looks like it may be a useful guide to the process (if it is relevant to you)

How to transfer SAYE shares into an ISA

vacheron

https://forums.moneysavingexpert.com/discussion/comment/82044148#Comment_82044148

Also, using the assumption that this is a SAYE scheme. If you open a Flexible S&S ISA (not discussed in the link above), you can "rinse" multiple £20K withdrawals of SAYE funds through the ISA (providing you complete this within the 90 day window), so you can get numerous multiples of £20K out of an ISA with zero Capital Gains tax to pay! 😊

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82044306#Comment_82044306

Yes That has been discussed on here from time to time. However for some reason I thought they had put a stop to it. There was a page on equiniti's website discussing it and that seems to have gone

Page Not Found - Equiniti

vacheron

https://forums.moneysavingexpert.com/discussion/comment/82044351#Comment_82044351

it was still mentioned here in the CGT section in 2024:

https://equiniti.com/uk/news-and-views/eq-views/employee-share-plans-update-april-2024/

Can confirm it still works as my colleague just did about a month ago via Equiniti, and I’ll hopefully be doing the same on a couple of months.🤞

all4one

To answer a few question from above, I want to sell the shares and use the cash to fund this years ISA (not by back the orginal company in an ISA), and the same ongoing every year until the pot has diminished.

I haven't pulled any money yet (so I think I can ignore the 90 day issue at the moment), I want to check my options first. Yes it was mainly UK SIP but I did buy some outside of that additionally.

If I need someone to do this for me, is it an accountant or a Financial Advisor ? and how much approx would it cost ?

Not really sure I understand the flexible ISA, my understanding is only 20k per year I can put into an ISA.

Appreciate the help here folks….

eskbanker

I want to sell the shares and use the cash to fund this years ISA (not by back the orginal company in an ISA)

In which case, as per earlier post, Bed & ISA isn't an option for you, as that's all about moving the same investments into the ISA wrapper.

I haven't pulled any money yet (so I think I can ignore the 90 day issue at the moment)…

That doesn't really follow - the significance of the 90 day window is that you can transfer shares directly into an ISA (and potentially do so for all of them in one year rather than just £20K worth) during that window, starting from initially having access to the shares. When did you actually take ownership of them?

If I need someone to do this for me, is it an accountant or a Financial Advisor ? and how much approx would it cost ?

I'm not aware of such assistance being available solely to process a set of transactions like this, but happy to be corrected.

Not really sure I understand the flexible ISA, my understanding is only 20k per year I can put into an ISA.

It only relates to a workaround that's potentially available to you if you're still within 90 days of owning the shares.