Transfer Shares into an ISA
Compared to previous years, transferring your shares into a Cash ISA is relatively easy. You no longer have to sell your investments in order to transfer and instead your new provider will take care of it all, providing you give them the full details of your investments on the provided transfer form.
The rule change is good news for people approaching retirement who may not want to leave their money exposed to the stock market. Savers approaching other life events, such as buying a house or getting married, may also want to lock in some gains and protect a portion of their savings.
You won’t have to pay Capital Gains Tax on any gains you make on your shares if you move them to an ISA.
Rules for Transferring Shares
- The most important thing to remember is never to simply withdraw your money from the investment Isa and pay it into a cash Isa. Doing so will cancel the tax-free benefit
- If you’ve already opened a Cash ISA this year, check that it accepts transfers from other Isas. If it is a fixed rate account you may not be able to add the proceeds from your stocks and shares Nisa and obtain the same rate
- Fill in a transfer form. Your Cash ISA provider will send the transfer request to your stocks and shares Isa provider, which will sell some or all of the assets, according to your instructions
- Once all the sales have been settled and any closing fees deducted, the money will be transferred to the cash Nisa provider. The transfer itself can take around 30 days