Question
I have some of the same company shares bought and held in both an ISA and a non ISA dealing account.
I want aggregate the two holdings within my ISA account i.e. the same company shares all in the ISA.
Can I simply sell them in the non ISA account and use the money to buy them back in the ISA and are there any
constraints on doing so?
I am aware of the dealing costs and the chance that the share price may change. The accounts are with different brokers and both on line dealing accounts.Answer
Yes, in fact selling the shares and using the cash to repurchase within an ISA is the only way you can do this unless the shares come from an employee share scheme such as SAYE or
a Share Incentive Plan (SIP) - in which case the shares can be transferred into an ISA within 90 days of the option date./plan ceasing.
Just be aware that any gain you make from selling your shares will count towards your annual capital gains tax allowance, £10,900 for the 2013/14 tax year. If, over the tax year, your total gains exceed this amount the excess will be taxable.
Also bear in mind that only shares listed on a HMRC recognised stock exchange may be held in ISAs, currently this precludes companies listed on the Alternative Investment Market (AiM), although the Government has suggested AiM shares may be allowed in future. Although given you already hold the shares in an ISA this doesn't seem an issue.
I have some of the same company shares bought and held in both an ISA and a non ISA dealing account.
I want aggregate the two holdings within my ISA account i.e. the same company shares all in the ISA.
Can I simply sell them in the non ISA account and use the money to buy them back in the ISA and are there any
constraints on doing so?
I am aware of the dealing costs and the chance that the share price may change. The accounts are with different brokers and both on line dealing accounts.Answer
Yes, in fact selling the shares and using the cash to repurchase within an ISA is the only way you can do this unless the shares come from an employee share scheme such as SAYE or
a Share Incentive Plan (SIP) - in which case the shares can be transferred into an ISA within 90 days of the option date./plan ceasing.
Just be aware that any gain you make from selling your shares will count towards your annual capital gains tax allowance, £10,900 for the 2013/14 tax year. If, over the tax year, your total gains exceed this amount the excess will be taxable.
Also bear in mind that only shares listed on a HMRC recognised stock exchange may be held in ISAs, currently this precludes companies listed on the Alternative Investment Market (AiM), although the Government has suggested AiM shares may be allowed in future. Although given you already hold the shares in an ISA this doesn't seem an issue.
Read this Q and A at http://www.candidmoney.com/askjustin/860/must-i-sell-shares-to-put-them-in-my-isa
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