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  • FIRST POST
    • Crystal_Pixie
    • By Crystal_Pixie 17th Apr 18, 3:55 PM
    • 81Posts
    • 25Thanks
    Crystal_Pixie
    SAYE Shares into SIPP
    • #1
    • 17th Apr 18, 3:55 PM
    SAYE Shares into SIPP 17th Apr 18 at 3:55 PM
    I have been part of my works Sharesave and SAYE for over 15 years now as a way of lowering my tax bill.


    I don't really need this cash at the moment, and I wondered if I could do an "in Specie" transfer of some of these shares to my personal SIPP.


    These shares are bought before tax and NI and I have found lots of information on transferring shares to an ISA but not much information on transferring shares to my SIPP.


    I just wondered if I could claim tax back as well?
Page 1
    • Dox
    • By Dox 17th Apr 18, 11:59 PM
    • 1,018 Posts
    • 795 Thanks
    Dox
    • #2
    • 17th Apr 18, 11:59 PM
    • #2
    • 17th Apr 18, 11:59 PM
    Yes. See https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/in-specie-contributions/
    • OldBeanz
    • By OldBeanz 18th Apr 18, 8:48 AM
    • 781 Posts
    • 615 Thanks
    OldBeanz
    • #3
    • 18th Apr 18, 8:48 AM
    • #3
    • 18th Apr 18, 8:48 AM
    You do not say anything about your investments or the company you work for but many people with share save schemes end up without a diversified portfolio. 20 years ago buying shares in blue chip companies like Tesco or Royal Bank of Scotland would have appeared a good idea. You may well have diversified but if not then you should think about having too many eggs in the one basket.
    • Crystal_Pixie
    • By Crystal_Pixie 19th Apr 18, 12:46 PM
    • 81 Posts
    • 25 Thanks
    Crystal_Pixie
    • #4
    • 19th Apr 18, 12:46 PM
    • #4
    • 19th Apr 18, 12:46 PM
    You do not say anything about your investments or the company you work for but many people with share save schemes end up without a diversified portfolio. 20 years ago buying shares in blue chip companies like Tesco or Royal Bank of Scotland would have appeared a good idea. You may well have diversified but if not then you should think about having too many eggs in the one basket.
    Originally posted by OldBeanz
    I work for Rolls-Royce so a FTSE 100 company.

    I have a portfolio in my SIPP which I am happy with. My idea was to minimise the amount of tax and NI I am paying. I wasn't sure if you could transfer in specie and get the 20% tax benefit as well.


    Also, if I was to transfer these shares into my SIPP I am presuming I can sell the shares if I want to rebalance.
    • Clifford_Pope
    • By Clifford_Pope 19th Apr 18, 12:51 PM
    • 3,898 Posts
    • 4,295 Thanks
    Clifford_Pope
    • #5
    • 19th Apr 18, 12:51 PM
    • #5
    • 19th Apr 18, 12:51 PM
    I wasn't sure if you could transfer in specie and get the 20% tax benefit as well.

    .
    Originally posted by Crystal_Pixie

    I would imagine so if the pension provider permits it. You can certainly transfer commercial property into a SIPP in-specie and get tax relief.
    Subject to the usual contribution restrictions of course.
    • Dox
    • By Dox 19th Apr 18, 12:55 PM
    • 1,018 Posts
    • 795 Thanks
    Dox
    • #6
    • 19th Apr 18, 12:55 PM
    • #6
    • 19th Apr 18, 12:55 PM
    I would imagine so if the pension provider permits it. You can certainly transfer commercial property into a SIPP in-specie and get tax relief.
    Subject to the usual contribution restrictions of course.
    Originally posted by Clifford_Pope
    Already answered in the link I've given above: yes.
    • cloud_dog
    • By cloud_dog 19th Apr 18, 1:32 PM
    • 3,953 Posts
    • 2,391 Thanks
    cloud_dog
    • #7
    • 19th Apr 18, 1:32 PM
    • #7
    • 19th Apr 18, 1:32 PM
    These shares are bought before tax and NI and I have found lots of information on transferring shares to an ISA but not much information on transferring shares to my SIPP.


    I just wondered if I could claim tax back as well?
    Originally posted by Crystal_Pixie
    Soooo, why not transfer them in to an ISA (assuming it is a qualifying scheme) and then withdraw the money and make a payment in to a SIPP?

    Or, transfer the SAYE in to an ISA and use that as 'living' money and make a sacrifice from your salary in to your pension?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Crystal_Pixie
    • By Crystal_Pixie 20th Apr 18, 12:11 PM
    • 81 Posts
    • 25 Thanks
    Crystal_Pixie
    • #8
    • 20th Apr 18, 12:11 PM
    • #8
    • 20th Apr 18, 12:11 PM
    Soooo, why not transfer them in to an ISA (assuming it is a qualifying scheme) and then withdraw the money and make a payment in to a SIPP?

    Or, transfer the SAYE in to an ISA and use that as 'living' money and make a sacrifice from your salary in to your pension?
    Originally posted by cloud_dog

    I am not sure how I could do the sacrifice from my salary into my pension as I have a final salary scheme with the company I work for.

    Did think about transferring to an ISA but I wasn't sure if I would incur Capital Gains tax on the transfer over to a SIPP.

    I'm liking the idea of getting the tax benefit by putting these shares in a SIPP and as a higher tax payer I can then add the transfer to my tax return.
    • cloud_dog
    • By cloud_dog 20th Apr 18, 2:21 PM
    • 3,953 Posts
    • 2,391 Thanks
    cloud_dog
    • #9
    • 20th Apr 18, 2:21 PM
    • #9
    • 20th Apr 18, 2:21 PM
    You need to find out if it is a qualifying scheme.

    Re pensions... Is the below still relevant to yourself:

    Transfers of certain shares from Save As You Earn (SAYE) option schemes or share incentive plans

    Section 195 Finance Act 2004

    The transfer of certain shares by a member into a registered pension scheme can be treated as a contribution on which tax relief may be given.

    The shares must be shares:
    • which the member acquired on exercising a right under a SAYE option scheme (as defined in section 516 Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003)) or;
    • which were appropriated to the member under the provisions of a share incentive plan (as defined by section 488 ITEPA 2003).
    The shares must be transferred to the pension scheme within a set period. This is:
    • for shares in a SAYE option scheme 90 days after the member exercised their right to acquire the shares, and;
    • for shares in a share incentive plan 90 days after the member directed the trustees of the share incentive plan to transfer ownership of the shares to the member.

    The value given to the contribution for tax relief purposes is the market value of the shares at the date they were transferred to the pension scheme.


    Also, see:

    Royal London article for in specie transfer s in to pension.
    Last edited by cloud_dog; 20-04-2018 at 2:32 PM.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
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