Transfer Shares into an ISA
Investment ISAs put your capital at risk & you may get back less than you originally invested
Investment ISAs put your capital at risk & you may get back less than you originally invested
- Fund Choice: 10 managed portfolios to choose from. Choose your risk profile and have an investment Plan built and managed for you
- Invest From: £1
Why we like it: Choose your level of risk from cautious to adventurous and have a plan expertly created and managed for you. Create multiple Plans – including Ethical Plans – with different risk levels. Invest as little or much as you like, add regular payments and top up whenever you like. Withdraw money or transfer out without notice or penalty fees. Wealthify app lets you check how your Plan is performing, manage your transactions and provide investment news and insights. Simple annual management charge of 0.6%
- Fund Choice: Access 40,000+ UK, US and international shares on 17 global exchanges. Choose from over 3,000 funds
- Invest From: £25 pm
Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading. Capital at risk.
- Fund Choice: Invest in over 2,000 funds, shares and more across 25 markets
- Invest From: £25 pm
Why we like it: Invest in over 2,000 funds, shares and more across 25 markets. Invest from £25 per month. Which? Recommended Provider for Investment Platforms 2019–2023. Low-cost online dealing from £3.50. Open your account in minutes from app or website, manage your portfolio on the move. FSCS protected. Capital at risk
- Fund Choice: Nutmeg offer 5 diversified portfolios with ETFs, using technology to keep charges low
- Invest From: Min. £500 single
Why we like it: Get an intelligent stocks & shares ISA portfolio – Choose a portfolio that’s fully managed by our expert team or a fixed allocation portfolio. No tie-ins, no set-up fees, no exit charges. Easy, online set up in minutes. Start with as little as £500. Portfolio management fees of 0.45%-0.75% up to £100k. 0.25%-0.35% beyond £100k. There are also underlying investment charges, see our fees page. Plus, live chat, amazing customer support and brilliant investor tools and guides. Authorised and regulated by the FCA. Capital at risk. Tax treatment depends on your individual circumstances and may change in the future. Capital at risk. Approved by Nutmeg 24/02/2023
- Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK. With online guidance tools and expert fund ideas to help you choose
- Invest From: £25 pm
Why we like it: This award-winning ISA has an extensive range of investment options, including thousands of funds and shares, plus a guidance service to help you find investment ideas. There is a low service fee (typically 0.35%), easy online application process and apps to manage your money on the move. Additional charges apply depending on your choice of investments. Plus, everything is backed by Fidelity’s 50 years of investment experience. Boring Money Best Buy ISA 2023
Stocks & Shares ISA Transfer Cashback Offer (Terms Apply)
from Hargreaves Lansdown
- Fund Choice: 3,000+ Funds
- Invest From: £25 pm
Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.
Offer:
Cashback » available now when you transfer (Terms Apply)
Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.
- Invest From: £10 pm
- Investment Options: Is an insurance based Junior ISA which invests in stocks and shares via a With-Profits pooled fund
Why we like it: Your child’s money will be invested through a fund manager & will be invested primarily in stocks and shares, with the aim of achieving higher growth over the long-term than might be available through a cash-based Junior ISA. Open a Junior ISA for your child and get rewarded too. . Capital at risk. Please note: As with all investing, your capital is at risk you may get back less than you have put in. The value of the ISA will depend on the performance of the investments and any bonuses cannot be guaranteed. Additionally, if investment conditions are poor, we may apply a Market Value Reduction (MVR)
- Fund Choice: Invest in over 2,000 funds, plus Exchange Traded Funds, Investment Trusts, UK & International shares and more. Five Ready-made Investment funds if you’re not sure where to invest. Capital at risk.
- Invest From: £50
- Fund Choice: Choose your risk profile and have it matched to an investment portfolio expertly built and managed.
- Invest From: £1,500
Why we like it: Answer questions about your goals, financial situation and attitude to risk, and Moneyfarm will recommend the right ISA portfolio for you, built and managed by experts to help your money grow. You’ll always be invested in a portfolio that’s suitable for you, and you can manage this through the Advice Centre. See what you’re invested in, how you’re performing and how much you’re paying anywhere and any time with the Moneyfarm app. Add money to your ISA by setting up a direct debit, investing a lump-sum, or by transferring old ISAs for free. Capital at risk.
Can you transfer shares into an ISA?
You cannot transfer normal shares and investments directly into an ISA, but you can sell and repurchase them within your ISA account to get the ISA tax benefits.
HMRC only allows cash contributions into an ISA. This is because they need to track how much you contribute each year so that you don’t go over your limit of £20,000.
If you transferred non-ISA stocks and shares straight in, things would get confusing as their price fluctuates so frequently, and there may be exchange rates and bid-offer spreads to account for too.
How do I transfer shares into an ISA?
The best way to get your non-ISA shares and investments into an ISA is to sell them, add the proceeds to your ISA, and repurchase them inside your ISA.
Once your investments are in a Stocks and Shares ISA they are completely immune from taxes. But first, you need to know how to put shares into an ISA.
The best way to do this is via a Bed and ISA.
What is a Bed & ISA?
A Bed and ISA is the process of selling your existing shares and investments and instantly buying them back within a Stocks and Shares ISA wrapper, making them immune from taxes going forward.
Your ISA provider carries out a Bed and ISA for you so that they can complete both trades almost instantly and reduce any market movements in between the deals. This means you’re less likely to miss out on any share growth during the process.
You can Bed & ISA as many shares or funds as you want, but each one will use up a portion of your annual ISA allowance so you can’t go over £20,000 in the current tax year.
How does a Bed and ISA work?
The Process:
Let’s say you own 5,000 BP shares that you want protecting in a Stocks and Shares ISA account.
1. You first need to make sure you hold these BP shares with your Stocks and Share ISA provider so they can sell them for you.
If you hold physical share certificates, you’ll first need to transfer or lodge these with your ISA provider to get electronic versions. Speak to your ISA provider to get the relevant paperwork to do this and find out the charges.
If you hold your shares or investments in a trading or general investment account with someone else, then you’ll need to transfer them to your ISA provider’s general investment account. You can do this with a form in the post, and remember to check the transfer charges with your old provider.
2. Next, submit your Bed & ISA instruction via your mobile app, online account, or by phone or post.
Your BP shares will be sold, the proceeds contributed to your ISA, and then instantly bought back (within seconds) inside your Stocks and Shares ISA account.
Capital Gains Tax (CGT): Remember, when your shares sell at this point you are liable for capital gains tax on the proceeds. Even though they are going into an ISA, there is no way to avoid this CGT tax charge if your sales warrant it. Only after they are ISA wrapped are your sales free from capital gains tax.
You will probably have a few less shares than you started with due to dealing fees and the bid-offer spread (the small difference between a share’s sale and purchase price).
Your ISA top up amount is the amount that goes into your ISA to purchase your new shares with. Your ISA provider will confirm this figure, and it is deducted from your remaining 2021/22 ISA allowance.
3. From this point, your BP shares are completely free from dividend tax and capital gains tax.
Can I transfer shares worth more than £20,000?
If your existing shares are worth more than £20,000, you can Bed and ISA up to £20,000 worth in one tax year, but not more.
You don’t need to sell 100% of your holding to do this, only £20,000 worth, so you won’t need to pay off your full CGT liability at once if you have one.
You can then spread your CGT tax liability over multiple tax years, doing a Bed and ISA each year.
What types of shares can I transfer into an ISA?
The above process works for any shares or other investments that you can hold in an ISA, including:
- Share certificates
- Shares
- Funds and other investment products
- Trading accounts
Note: you cannot hold private company shares in an ISA – only those that are publicly traded.
Frequently Asked Questions
What are the benefits of transferring shares into an ISA?
Once you have moved your shares into an ISA account, you won’t need to pay income, dividend or capital gains tax at all on your investments.
Does it cost money to move shares into an ISA?
Most likely, yes, but not always. You could be charged for transferring your investments to your ISA provider and also charged on both the sale and repurchase.
How many shares can I transfer into an ISA?
You can have as many shares as you like in a Stocks and Shares ISA provided you don’t contribute over your annual ISA allowance which is £20,000 for the current tax year.
You can hold shares in as many different companies as you like.
Will I pay capital gains tax moving shares into an ISA?
Yes, you cannot transfer your shares into an ISA without paying any CGT liable on the value of your sale.
This is because up to £20,000 worth of your shares are sold and then repurchased, triggering your GCT liability on the sale value.
How long does it take to transfer shares into an ISA?
If your shares are already held electronically with your ISA provider then a Bed and ISA will complete in the same day.
However, if you need to transfer your stocks to your new provider first, it can take several weeks to complete.