What is a Bed and ISA transfer?
“Bed and ISA” is the name given to the process of transferring your shares from a general investment account (like a Trading Account) into an ISA.
On the surface, it might sound complicated, but we make it easy by automatically handling the transfer for you. This involves selling your shares and immediately repurchasing them in your ISA.
You will be charged Capital Gains Tax (CGT) on the sale of the stocks if your profit exceeds £3,000 (tax year 2024/2025).
Something to be aware of is that this is affected by your annual ISA allowance. You have a yearly allowance of £20,000 to put into your ISAs, so you will need to be below that limit to repurchase your shares.
You also have to consider that you may not be able to repurchase the exact number of shares sold as the price can fluctuate, and you may be charged trading fees and stamp duty on the repurchase.
