Shares outside an ISA

Looking for a bit of advice on Shares I have received that are currently outside of an ISA and I am wondering whether I can move them Inside?

I received a long term share incentive from my employer, they have recently matured / vested.

They are held in a plan managed by Fidelity Net Benefits, when they vested some of the original grant were held back to cover the income tax due at the fair market value. I have no immediate intentions to cash them in but when I do I will be liable for CGT if they grow from the initial value.

Therefore what I was wondering is if anyone knows if I can move them into an ISA or if I am stuck with them as is?

Thanks

Hargreaves Lansdown also require you to sell & re-buy so I don't think there's the possibility to do an in-specie type transfer.

Is there a particular reason for retaining the shares now they have vested?

Yes, this CAN be possible.

I did this when I was Tupe'd to another company so all of my Share options were treated as if I had left the company, i.e. the normal 3-5 year delay to be able to take the scheme proceeds without tax were waived.

Here's the standard info I got from HL when I did this. I used HL specifically as they provide this service.

Basically I filled in forms to transfer from our company's share provide (Computershare) to HL, and the 2 platforms took care of the transfer. it was done my moving the shares into an HL Fund account and then into an ISA wrapper up to a max of £20k. This had to be completed within a certain timescale (90 days I think) of my share election decisions.

Here's the message I received from HL on the process. It wasn't the most straightforward thing I've ever done, but it worked.....


To then move shares from an Employee Share Scheme from your HL Fund & Share Account to an HL Stocks and Shares ISA, please complete our attached Share Scheme Transfer application form. This form will allow you to transfer your shares from your Scheme provider to HL and move them into an ISA. Should you want these shares transferred to an HL SIPP, please also include a covering letter detailing this instruction.

The process will open an HL Stocks and Shares ISA for you, if you don’t already have them open.

How does the process work?

1) Complete and return our Share Scheme Transfer application form in the post along with some additional paperwork proving the scheme is HMRC approved (see below for help).

2) We’ll arrange to transfer your shares to HL and into your Fund & Share Account.

3) Once the shares have arrived, we’ll move as many whole shares as possible into your HL Stocks and Shares ISA up to the ISA allowance of £20,000. Any shares left over will stay in your HL Fund & Share Account.

Where the shares have come from a HMRC approved Share Scheme, they don’t have to be sold before being moved into an ISA. This is subject to a 90-day deadline either from the date you ask the provider to transfer the shares to you (for a Share Incentive Plan or SIP), or the date on which you ‘exercise the option’ to take the shares (for a Save As You Earn or SAYE). If you miss the deadline, you can still move the shares to HL, but you’ll need to sell and repurchase them to move them into an ISA. This is considered a disposal for capital gains tax purposes. Tax rules can change, and benefits depend on your personal circumstances.

In order to ensure that your shares can be transferred to an HL Stocks and Shares ISA, we’ll need some additional paperwork. This needs to include:
· A statement which confirms your shares have come from an HMRC-approved Share Save or Save As You Earn scheme (SAYE) or Share Incentive Plan (SIP). This is normally included in your maturity documents.
·The account details of your scheme
· The name of your scheme
·The number of shares being transferred from your scheme
· For SAYE schemes, the date which you chose to buy the shares rather than take the cash. This is referred to as the 'date that you exercised your option' or the 'exercise date'. We're unable to accept documents that only refer to the 'allotted' date.
· For SIPs, if your shares have left the plan account before your transfer to HL, the date that your shares left the plan account. This can be evidenced by an opening statement for the account the shares are now held in.

While the Share Scheme Transfer application form needs to be sent in the post, this evidence can be uploaded electronically upon request of a link to do so.

If you have not received these documents, please contact your current provider who will be able to assist you with obtaining them.

If your Share Scheme gives you certificated shares, you do not need to contact your current provider that looks after your Employee Share Scheme. Instead, please send the certificates to us along with your completed Share Scheme Transfer application form. You will also need include the relevant information/evidence from the list above, and you'll need to complete the <a href=https://www.hl.co.uk/__data/assets/pdf_file/0008/9150587/Crest-Transfer-Form.pdf>CREST Transfer Form</a> so that we can re-register the shares in nominee (electronic) format.

Once we’ve received your certificates we’ll allocate them to your HL Fund & Share Account then move as many as possible into your HL Stocks & Shares ISA.

Before completing the application form(s), please ensure you have first read the <a href=https://www.hl.co.uk/data/assets/pdf_file/0013/37120/Vantage_Key_Features.pdf>Key Features</a> and agree to the <a href=https://www.hl.co.uk/data/assets/pdf_file/0015/37122/Online-Ts-and-Cs.pdf>Terms and Conditions</a> of the HL Service. Remember shares can fall as well as rise in value so you could get back less than you put in.

Please return your complete application form and any supporting paperwork by post to us at: Hargreaves Lansdown, One College Square South, Anchor Road, Bristol, BS1 5HL, or you can use our freepost address: Freepost, HARGREAVES LANSDOWN.

If you, or your Scheme provider, require further details please reply to this email, and we’ll be happy to help.

Good point, thanks. I'd forgotten that I'm one of the few on here that isn't a powerfully built company director.

I'd agree that finding out what type of incentive scheme it is would be the first step, and then you can work out the rules around it to see what's possible.

Thanks for the responses.

I have the actual shares and I have paid the income tax on them at fair market value already. a % of the shares I was granted were withheld and sold to cover the Income tax liability, so it is "just" CGT that I am looking to avoid / mitigate

The shares are held by Fidelity Net benefits so sounds like only option would be to sell them and re-buy them within an ISA.

Company is doing well shares are up 30% in six months from the fair market value price that I paid tax on so the worry was when I do sell I will have CGT to pay.