ShareSave scheme to S&S ISA

[chrismoose91]

For the last 3 years I've been putting £500 a month into a company share scheme.
Buying at 110p a share, which are now hovering around 145p.
I've transferred out of the scheme into a stock holding account, and the 90 day countdown has begun to transfer out to avoid CGT.

Am I best off putting it into a S&S ISA or something else?
I am likely to sell them off within the next 2 years to fund a house move.

The scheme is with Equiniti. Can I transfer the shares to a lloyds account or am I stuck with Equiniti?

Thanks!

[The Gauge]

I have no knowledge or what can and can't be done with share save schemes, but if I knew I definitely needed the money in 2 years time I wouldn't be putting it into shares where there is a risk of a big dip. I'd be putting it into a cash ISA or if that option is closed then a fixed interest NS&I savings bond or similar

Edited by The Gauge on Saturday 24th October 08:50

[Dobberano]

You could also move them to an S+S ISA and have them invested in a bond like fund or a money market fund rather than equities, for a much more stable return

[chrismoose91]

Thanks both.

I'm maxed out on premium bonds at present.
I will be waiting for the shares to hit 180p and then selling. Forecast is looking good and expected is low 200s, as per berenberg.

I may transfer out to my Trading212 account to keep fees down and build it up there.

[v8notbrave]

If you think price will increase then take part out and then sell drip feed to hit the 3k CGT limit? Do over 2 years you have 6k in gains tax free (which could be done in one April for example). Spread your eggs and put the ones you sell in an ISA global tracker of some sort

[chrismoose91]

I may have to anyway as it's currently sat at 23k, with only being able to transfer 20k into the ISA.

[Jon39]

chrismoose91 said:

I will be waiting for the shares to hit 180p and then selling.

[ Forecast is looking good and expected is low 200s, as per Berenberg.
I may transfer out to my Trading212 account to keep fees down and build it up there. ]

I can remember some of my colleagues saying exactly that, many years ago.
Some spent their proceeds on new cars, which eventually depreciated to nothing and probably ended up in scrap yards.

I considered the business was a very good, so did not follow their plan.
Price now 4400p and the dividends received, have been many times the original purchase cost.
In relation to earnings, that business is cheaper now than when the share price was 180p.

Do you think your employer's business has a good future?

[ Ignore analysts' forecasts. ]

[ I have noticed continual heavy advertising by Trading212. They give the impression that they provide their services free. Are they a charity? Just the word Trading puts me off, because trading is not investing, it is gambling. ]

[goingonholiday]

chrismoose91 said:

For the last 3 years I've been putting £500 a month into a company share scheme.
Buying at 110p a share, which are now hovering around 145p.
I've transferred out of the scheme into a stock holding account, and the 90 day countdown has begun to transfer out to avoid CGT.

Am I best off putting it into a S&S ISA or something else?
I am likely to sell them off within the next 2 years to fund a house move.

The scheme is with Equiniti. Can I transfer the shares to a lloyds account or am I stuck with Equiniti?

Thanks!

You need to get a letter of appropriation from equiniti then use a s&s isa provider that accepts direct in-specie (as-is) transfers from employee share schemes. Hargreaves, halifax / lloyds, most of the big names but check.

You might need to do a transfer from equiniti to a general trading account with your providrr of choice then an internal transfer. That is how it worked when I did this from equiniti to halifax share dealing.

Do not sell shares before the isa transfer, you will be liable for cgt if you do that!

To avoid cgt you will have to transfer to a s&s isa, transfer the £20k and the £3k left over isn't much of an increase based on your figures so sell without any cgt liability.

Note when you sell within the s&s isa you can put that money into a money market fund which is pretty close to cash or transfer to a cash isa.

[chrismoose91]

Jon39 said:

I can remember some of my colleagues saying exactly that, many years ago.
Some spent their proceeds on new cars, which eventually depreciated to nothing and probably ended up in scrap yards.

I considered the business was a very good, so did not follow their plan.
Price now 4400p and the dividends received, have been many times the original purchase cost.
In relation to earnings, that business is cheaper now than when the share price was 180p.

Do you think your employer's business has a good future?

[ Ignore analysts' forecasts. ]

[ I have noticed continual heavy advertising by Trading212. They give the impression that they provide their services free. Are they a charity? Just the word Trading puts me off, because trading is not investing, it is gambling. ]

Thanks for the reply.
It's hard to say, the prices are strongly linked to the RMI industry as well as new build. Stock is Eurocell PLC.

It's hard to say. But looking at executive leader stock purchases at near to current values, it's promising.

If I can, I'd like to cash in at a decent price and spread the proceeds around several funds/pies.

They make money from CFDs and interest. I play arund on their 'practice' share trading to see how I'd get on. Now I'm older, with more disposable income, I'd like to invest properly.

[cml24]

goingonholiday said:

You need to get a letter of appropriation from equiniti then use a s&s isa provider that accepts direct in-specie (as-is) transfers from employee share schemes. Hargreaves, halifax / lloyds, most of the big names but check.

You might need to do a transfer from equiniti to a general trading account with your providrr of choice then an internal transfer. That is how it worked when I did this from equiniti to halifax share dealing.

Do not sell shares before the isa transfer, you will be liable for cgt if you do that!

To avoid cgt you will have to transfer to a s&s isa, transfer the £20k and the £3k left over isn't much of an increase based on your figures so sell without any cgt liability.

Note when you sell within the s&s isa you can put that money into a money market fund which is pretty close to cash or transfer to a cash isa.

Exactly this. It's what I've always done.

[Dobberano]

I've never tried it but, theoretically with a flexible ISA you should be able to transfer in the £20k of your £23k from sharesave, sell 3k and withdraw it, then another transfer of the remaining £3k from sharesave to the ISA. (Equally if it's only 3k then your CGT liability is minimal).

Trying to apply this methodology might be more trouble than it's worth though. If they require you to move from sharesave to a general investment account first, I guess you move the full 23k to the GIA, then 20k to flexible ISA, withdraw 3k as necessary then the final 3k from GIA to ISA.

Edited by Dobberano on Saturday 24th October 21:18