Transfering Shares to isa

[glennjamin]

I've accumulated approx £130k of shares through share save for company I work for, which I hold in share certs, I would like to transfer them to stocks and shares ISA, I know my annual amount is £20k per year. How can I transfers them with out selling them and being taxed on them ?.

[anonymous-user]

glennjamin said:

I've accumulated approx £130k of shares through share save for company I work for, which I hold in share certs, I would like to transfer them to stocks and shares ISA, I know my annual amount is £20k per year. How can I transfers them with out selling them and being taxed on them ?.

I don't think you can unless you sell in small batches to keep you within the annual CGT allowance. With the £20k annual ISA allowance this is going to take over 6 years just to get their value into an ISA anyway.

[Deesee]

If it's a traditional share save it could now be held in a SIP (not a SIPP).

Bed and ISA 20k pa (40k if your married and use your spouses allowance).

Point any dividends to remain in the SIP (if it allows cash) or place on a share DRIP.

Maintain in SIP until you are ready to draw, CGT is/will change as may gifting to a spouse to use their CGT allowance. KIV 20/40% tax payers tax free amounts and what the prevailing rate of the CGT may be at 20/40%.

KIV 130k could be a lot of capital to hold in one share (depends what your overall investments are).

There are different types of 'share save' some income is taken post tax, some income pre tax, review the original pack, as some are exempt from CGT, & pure income tax.

Get your self a good IFA/Wealth manager.

Edited by Deesee on Monday 22 May 14:45

[Mr Pointy]

The first thing to do is get them out of paper certificates & into a CREST account if you can. You might start with the company share registrars to see if they can help you with that but failing that you'll need to find somone who will take the certificates in & put them in a CREST account. I used Hargreaves Lansdown but I think they have stopped taking paper certificates. It looks like a few places will take them (scroll down):

https://www.halifax.co.uk/investing/start-investin...
https://www.iweb-sharedealing.co.uk/our-accounts/t...
https://www.ajbell.co.uk/useful-forms/crest-transf...

Note the paper certificates are very valuable & you should consider how you are going to deliver them; I had to split them into batches worth £2500 as that was the maximum that RM Special Delivery would cover them for.

Once you have them in a CREST account you can start making in-specie transfers of £20k into an S&S ISA each year.

[OutInTheShed]

glennjamin said:

I've accumulated approx £130k of shares through share save for company I work for, which I hold in share certs, I would like to transfer them to stocks and shares ISA, I know my annual amount is £20k per year. How can I transfers them with out selling them and being taxed on them ?.

Unless you are very very rich, £130k is a lot to hold in one company.

The trouble with owning shares in the company you work for is that your job and your investment are tied together, so a bad few years for your company leaves you in a very bad place.

So personally, I would look at selling and putting some other shares in my ISA and SIPP.

[anonymous-user]

The OP was asking how he could avoid tax - not looking for investment advice. The tax question seems to have been answered - it depends on the nature of the company’s scheme.