Transferring Shares owned to an ISA
Discussion
My mother has shares in a n american company currently trading at circa 200 dollars a share. Initial purchase price was 159 dollars a share. currently owns 77shares. I think it would be worthwhile transferring these shares into a stocks and shares ISA.
I believe she would have to sell and rebuy them plus pay 0.5% stamp duty at a total cost of around £82.
However if she was to sell all the shares she would have to pay capital gains of about £400. Is this correct or am I missing something. I would expect these shares to rise back to close to 300 dollars within the year.
Any help would be appreciated.
I believe she would have to sell and rebuy them plus pay 0.5% stamp duty at a total cost of around £82.
However if she was to sell all the shares she would have to pay capital gains of about £400. Is this correct or am I missing something. I would expect these shares to rise back to close to 300 dollars within the year.
Any help would be appreciated.
That's about £10000, and the profit element is about £2000, no? - assuming a static exchange rate which is obviously not the case.
Why would she have to pay CGT, which has a threshold of about £11k, unless she's already used up her allowance for the year?
I also don't know how you've arrived at £82 fees, unless the numbers in your post are off.
Why would she have to pay CGT, which has a threshold of about £11k, unless she's already used up her allowance for the year?
I also don't know how you've arrived at £82 fees, unless the numbers in your post are off.
The company would have to be trading on a recognised investment exchange for the stock to be ISA eligible.
The shares would need to be held electronically first, before they can be bed and isa'd. If they're on a share certificate, then they would need to be dematerialised by a UK broker. This would cost an admin fee.
As above, your mother has a CGT allowance of £11,000 - a CGT is a profit on the book cost. The ISA allowance is £15,000 for this tax year.
As you say in your initial post, you will need to sell the stock and buy it back. The charges that will be incurred will be the market's spread between the bid and offer, in addition to any broker's charges.
Your Mother will also need to fill out a W8-Ben form if she hasn't done already, as brokers require this document when an individual holds US stocks.
If you need any help please PM me.
The shares would need to be held electronically first, before they can be bed and isa'd. If they're on a share certificate, then they would need to be dematerialised by a UK broker. This would cost an admin fee.
As above, your mother has a CGT allowance of £11,000 - a CGT is a profit on the book cost. The ISA allowance is £15,000 for this tax year.
As you say in your initial post, you will need to sell the stock and buy it back. The charges that will be incurred will be the market's spread between the bid and offer, in addition to any broker's charges.
Your Mother will also need to fill out a W8-Ben form if she hasn't done already, as brokers require this document when an individual holds US stocks.
If you need any help please PM me.
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