shares

worcester1

I am in a company share saving scheme which finishes end of Dec this year. I will be entitled to 800 shares and provided the current share price does not drop this will give me a tidy sum of 16K.

I am unsure what to do with the shares when after I exercise my right to buy shares.

Can I use the £7200 worth of shares and put it into an ISA? Will any dividen/interest made be tax free ?

What should I do with the rest or all the 800 shares?

I don't want to sell the shares and will like to keep hold of them at least for the next 5 - 10 years if possible.

McSaver

If you dont want to sell the shares then of course you can hang on to them.

You can always use the dividends that you may receive for other investments or even get yourself more shares in the same company your in.

£16,000 in 1 company is a lot though, If your company goes through a bad patch the value of your shares could fall be a good few thousand. My suggestion may well is to keep half of your shares and invest the other half elsewhere in the ISA allowance you pointed out.

worcester1

Thanks McSaver

Do I have to physically sell half of the shares and use the cash to save on stock and shares ISA? Or Can I simply use half of the shares to save them in an ISA?

What confuses me is that I can't seem to understand stock and shares ISA - Whilst I know that cash ISA is a straight forward savings like any savings account, Stock ISA is a little more complex for me to understand.

Thanks

[Deleted User]

Hi,

have a look here, you could put the first £7200, when your share save matures in December, but only if you havn't already used up your Isa allowance, then more in the new tax year, and so on.

Though after first year, you will have to sell the shares first and buy them back, also there is an annual management charge.

For example from H-L:

In order to transfer shares in to an ISA they have to be sold and then bought back in the ISA. This is known as a Bed & ISA. With a Bed & ISA we waive the normal stockbroking commission to sell your shares, saving you as much as £50. All you pay is 1% (minimum £10, maximum £50) to buy your shares back within the ISA or SIPP and stamp duty of 0.5%. Furthermore as we buy back the shares immediately, the only difference in price will be the standard bid offer spread. Thereafter, the annual management charge to hold shares is just 0.5% (+VAT).