Transferring shares is pretty common, whether you want to move them between providers, transfer them into an ISA to save tax, or give them to a spouse or child.
So here's everything you need to know about transferring shares, including some tax-saving tips.
What do you mean by transferring of shares?
Put simply, it's when you already own shares and want to move them to a new account.
That could be because you want to move shares between providers, so all your investments are consolidated in one place. Or you might want to look into transferring shares into an ISA from a Dealing account, for the tax benefits. Or perhaps you want to transfer shares into someone else's name – apartner or a child, for example.
Can you transfer shares without selling?
Yes, you can transfer shares into a Dealing account. By transferring shares directly, rather than selling them and buying them back again, you may avoid paying capital gains tax. Transferring shares between your own accounts doesn’t count as disposing them for capital gains tax purposes – although if you transfer shares to someoneelse, it may do.
You'll also avoid any costs incurred by buying and selling investments. It's completely free to transfer shares to AJ Bell.
If you want to move shares you currently hold directly into an ISA, you’ll need to sell them first. This can be done through what is called a Bed and ISA transaction, rather than a direct transfer. We explain more about this process further on.
What's the procedure for transferring of shares?
When transferring shares to AJ Bell, we'll do the legwork for you.
First, it's a good idea to check that we offer the shares you'd like to transfer. You can hold a very wide range of shares with AJ Bell, including companies listed on the London Stock Exchange, AIM, and24 international markets.
Transferring shares into an Stocks and Shares ISA or Dealing account with us? To get started, log in and from the 'My account' menu, choose 'Transfers'. Just keep in mind that transferring internationalshares will take a bit longer.
More about transfers
Can I transfer shares using a share certificate?
Yes, you can deposit a UK share certificate – for free – into your Dealing account. The share certificate needs to be in your own name, and its address must match your registered AJ Bell address. If your share certificate is held injoint names, you'll need to deposit it into a joint Dealing account in both those names.
To start transferring shares with a physical certificate, just complete aCREST transfer formand send it to us with the original share certificate(s). Learn more abouthow to complete a CREST transfer form.
As well as your transfer form and certificates, we'll also need you to send us a covering letter including your Dealing account number. Our postal address is: AJ Bell, Transfers Team, 4 Exchange Quay, Salford Quays, M5 3EE
Share certificates can be costly to replace, so you may want to consider sending them by registered mail. That's because if the certificate is lost on its way to us, we aren't liable for the costs of replacing it.
Once we've received your paperwork, we'll process it and let you know when your shares have transferred over. It can take up to 10 working days when transferring shares this way.
If there are any problems or delays, we'll let you know.
Can I give my shares to a family member?
You can gift shares to someone in your family – including your spouse, civil partner or children – as long as you hold the shares in a Dealing account. You can't transfer shares in an ISA or SIPP. You might want to gift the shares for tax purposes, as part of a divorce settlement, or to pass onwealth to your children.
The process of transferring shares to a family member is a little different to above. You'll need to log into your account, then send us a secure message. In the message, please list the investment(s) you want to transfer, and confirm the transfer is a gift. For investments transferred as agift, stamp duty isn't payable.
Transferring shares to a partner can be a great way to maximise your tax allowance. Transfers between spouses aren't considered for capital gains tax purposes, which means that if you hold investments that have earned you a significant gain – above your annual capital gains tax allowance (£6,000in tax year 2023/24) – you can transfer some of these investments to your spouse. That way, you can both make use of your annual CGT allowances.
What are the benefits of transferring shares to an ISA?
If you hold shares in a Dealing account, transferring them to an ISA lets you protect them from tax.
Looking to move shares from your Dealing account to your ISA with AJ Bell? Then you'll need to carry out what's called a 'Bed and ISA'.
A Bed and ISA isn't a direct transfer, as your shares are sold in your Dealing account, then bought again in your ISA. But as the two transactions are carried out together, you'll only pay one dealing charge. Also, it minimises your exposure to market movements between deals.
Before getting started, there are a couple of things to think about. Firstly, remember to check you have enough ISA allowance left over to cover the amount you're transferring. Secondly, as a Bed and ISA involves selling your investments, you'll need to consider whether you'll be liable to pay any capital gains tax.
Learn more about how Bed and ISAs work, or read our five tips to boost your ISA savings.
Important information: ISA rules apply. Remember that the value of investments can change, and you could lose money as well as make it. We don't offer advice, so it's important you understand the risks. If you're not sure, please speak to a financialadviser. Past performance is not a guide to future performance. These articles are for information purposes only and are not a personal recommendation or advice.
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