Transferring from cash ISA to equity ISA?
Discussion
You won't necessarily need to wait for the new rules.
If you have not utilised your ISA allowance this tax year you could place your shares within an ISA wrapper. Given the value there would not be any tax negatives, and once the shares are there, they will be free of CGT, though you will not be able to reclaim the tax credit on the dividend.
JD
If you have not utilised your ISA allowance this tax year you could place your shares within an ISA wrapper. Given the value there would not be any tax negatives, and once the shares are there, they will be free of CGT, though you will not be able to reclaim the tax credit on the dividend.
JD
JD247 said:
You won't necessarily need to wait for the new rules.
If you have not utilised your ISA allowance this tax year you could place your shares within an ISA wrapper. Given the value there would not be any tax negatives, and once the shares are there, they will be free of CGT, though you will not be able to reclaim the tax credit on the dividend.
JD
JD can you expand on what you mean by free of CGT...i.e. when you do decide to sell them, even with significant capital growth they will be free of CGT and not use your annual allowance at all?If you have not utilised your ISA allowance this tax year you could place your shares within an ISA wrapper. Given the value there would not be any tax negatives, and once the shares are there, they will be free of CGT, though you will not be able to reclaim the tax credit on the dividend.
JD
And also regarding dividend payments, they will be taxed at your normal rate?
Once within an ISA they are totally free of CGT, regardless of your tax situation.
If within an ISA you are unable to reclaim the tax credit on the dividend.
The ability to put shares within an ISA depends on whether the ISA you currently hold will accept individual equities or not, so having an existing Stocks and Shares ISA may not do the trick.
Hope that clears things up.
If within an ISA you are unable to reclaim the tax credit on the dividend.
The ability to put shares within an ISA depends on whether the ISA you currently hold will accept individual equities or not, so having an existing Stocks and Shares ISA may not do the trick.
Hope that clears things up.
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