Bed and ISA - sense check please

pixelated_face

I'm hoping the below is correct, but looking for some confirmation as this is new to me!

I've ~£20000 in JMAT shares and in about a month I'll receive a special dividend of ~£5000. These shares were moved from a SIP to HL a few years ago.

The shares are worth slightly less than when I moved them so there should be no CGT to pay.

If I open an HL Stocks and Shares ISA can I use Bed and ISA to pay no tax on the dividend?

Secondly, a circular notice of general meeting was published a couple of days ago and it states that the 'Latest time and date for dealings in Existing Ordinary Shares' is Friday August 14th does this mean as long as I complete the Bed and ISA before this date I would be eligible for the dividend payment

Hopefully that makes sense. Thanks.

DRS1

I assume there was a reason you didn't move the shares straight from the SIP to an ISA? Maybe you had already used up the ISA allowance?

Just on the dividend I don't think the last dealing day is what is relevant there should be a record date for the dividend (ie the date when you need to hold the shares to qualify for the dividend. Does the circular mention that?

ETA - the circular does say the dividend is to be paid to shareholders on the register at 6.00pm on 14 August so ignore me.

pixelated_face

It looks like the 14th. Apologies for a stupid question, but trying to remove all doubt, would that mean if it's moved by then i'm eligible?

I didn't move it immediately as I had used my ISA allowance that year, but in all honesty I forgot all about moving it after that!

DRS1

The shares are worth slightly less than when I moved them so there should be no CGT to pay.

This sounds plausible but I don't know if it is true. You ought to double check it.

Certainly if the shares were still in the SIP when sold there would be no CGT and if they went straight from the SIP to an ISA and were sold in the ISA there would be no CGT.

What I am less certain about is what your base cost is if you take the shares out of the SIP and then sell them. Is it as you suggest the value at the date they are removed from the SIP or is it what you paid for them? I mention this because of the bit on this page about transfers to a pension

Tax and Employee Share Schemes: Share Incentive Plans (SIPs) - GOV.UK

The linked page about CGT isn't very helpful.

pixelated_face

I can't post a link but 'HS287 Capital gains tax and employee share schemes (2024)' looks like its market value when they leave the plan

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82084908#Comment_82084908

Ah That is good.

It does make the passage I mentioned about transfers to a pension look a bit odd though.

DRS1

It looks like the 14th. Apologies for a stupid question, but trying to remove all doubt, would that mean if it's moved by then i'm eligible?

Yes that looks right. I wouldn't leave it until the 14th though.

I don't think this will apply here but sometimes with a corporate action you find your line of stock gets frozen (eg you accept a tender offer and then you can't sell the shares after you have accepted). I don't think voting the shares would have that effect but I would avoid doing that just in case (or only do it after they are inside the ISA).

I didn't move it immediately as I had used my ISA allowance that year, but in all honesty I forgot all about moving it after that!

Well there was only a 90 day window for getting the shares from SIP to ISA and not having to worry about CGT. But if the share price has gone down you may have a capital loss which may be useful sometime. So maybe a blessing in disguise.