Transferring SAYE shares into ISA over two tax years

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2 replies 619 views
shade82000shade82000 Forumite
11 Posts
Part of the Furniture Combo Breaker
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi all.

I doubt I'm the first person to think of this but here goes ...

I have a SAYE scheme which matures end of 2019 and if the current share price holds out I stand to make enough profit to hit the ISA and personal allowance limits for one year.

I would rather sell the shares and pay off a chunk of my mortgage. I don't want to sell them slowly year on year while paying more mortgage interest, so I had a thought.

The SAYE scheme matures end of Dec 2019 and I have 6 months to exercise the option. Would the following type of thing be allowed:

1. Do nothing until some time in February 2020
2. Exercise the option to buy shares and ask for a certificate
3. Open an ISA and transfer up to the limit in February / March
4. Ask for the remaining shares to be sent back on a certificate
5. Wait until after April and open another ISA
6. Transfer another chunk of shares into new ISA, up to the limit
7. Receive remaining shares on a certificate

This seems to meet all the criteria (exercise within 6 months, transferred to ISA within 90 days, can prove shares were purchased in last 90 days etc), but I'm just not sure if it is actually allowed or not under the rules that govern SAYE / ISA transfers, without having to sell and buy back the shares.

Any help would be awesome ...

Thanks :)

Replies

  • VortigernVortigern Forumite
    3K Posts
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
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    Yes, that should work, but you could add:

    2.1 Sell some shares to use this year's CGT allowance.

    2.2 Give some shares to spouse, to sell within their CGT allowance.

    5 You don't need a new ISA, just add to the existing one.

    7.1 Sell some more shares to use next year's CGT allowance.

    7.2 Use the spouse again.
  • shade82000shade82000 Forumite
    11 Posts
    Part of the Furniture Combo Breaker
    That's great, thank you very much for the info :)

    Also good to know your other suggestions, although we both work for the same company and she has exactly the same SAYE schemes as I do this year and next, so she needs to go through the same steps as I do with her own allowances.

    It might come in handy in a couple of years though as I have another scheme that she didn't sign up to, so thank you for highlighting the extra options!
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