Can I transfer shares into an Isa?


I own some shares. Can I transfer these into an Isa? If so how do I go about this? PMCS, Totnes, Devon

Andy Carroll

Big money transfer: It might not be the £35m transfer footballer Andy Carroll commanded, but you can move shares into an Isa

Patrick Connolly, spokesperson for AWD Chase de Vere replies: The current annual Isa allowance is £10,200 and, of this, up to £5,100 can currently be invested in cash.

The Isa allowance is due to rise to £10,680 from April 2011. You can transfer shares currently held within a stocks and shares Isa, or cash held within a cash Isa, to another Isa easily and this will not impact on your annual allowance.

To do this you should first obtain an Isa transfer application form from the provider you are moving to which you should complete and submit. The new provider will then contact your current one and arrange for the funds to be sent over and invested into your new Isa.

However, if you transfer 'regular' shares (that are not currently in an Isa) into an Isa, bear in mind these will count toward your annual allowance and you will end up with charges.

Simon Lambert, of This is Money, adds: You also cannot transfer pre-owned non Isa shares directly into a self-select Isa. The shares must be sold and then rebought within the Isa - a process known as 'bed and Isaing'.

This will involve charges - there could be a charge to sell the shares and there will also be commission and stamp duty on the repurchase. You may also end up with a capital gains tax liability.

If you do want to do this, speak to a broker or your chosen self-select Isa provider who can advise you on the process.