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Bed and ISA

What is a Bed and ISA and how does it work?

A ‘Bed & ISA’ transaction allows you to sell existing investments and use the proceeds to open or top up an ISA account. You can then choose to buy the same investment back, choose another investment instead, or simply hold the cash within your ISA account.

Why do a Bed & ISA?

You can make use of all the tax benefits of holding investments within an ISA, without needing to invest new money. You can also make use of your Capital Gains Tax allowance:

  • Sell an investment which has made a profit, and you could make use of your Capital Gains Tax Allowance (£11,100 in the current tax year).*
  • Sell an investment which has made a loss, and you could use this to offset against any other capital gains now, or carry it forward to offset against other gains in the future.

* Please bear in mind, any capital gains in excess of the yearly allowance (£11,100 in the current tax year) may be subject to Capital Gains Tax. This applies to all gains made across the course of the tax year.

How do I carry out a Bed & ISA?

If you are a client of our Online Investment Service, just follow these three simple steps:

  • Sell
    Sell the existing investment(s) in your General Investment Account up to the value that you would like to raise, ensuring it will not exceed the ISA limit once invested into your ISA account.
  • Call
    Once you can see the cash proceeds in your ‘Available to invest’ cash balance (usually around 4 days later for funds, and 3 days later for shares), call our team on 020 7189 2400 and ask them to transfer the cash from your Investment Account to your ISA Account.
  • Reinvest
    Log in to your account any time after the following day if you would like to reinvest the cash into the same investments of your choice.

If you are a client of our Advisory Service or Managed Portfolio Service, please contact your Relationship Manager, who will be happy to carry out the Bed & ISA on your behalf.

What if I haven’t opened an ISA account yet?

If you have never opened an ISA with us before, just complete this simple ISA application form and send it to us at the below address in advance so that we can have the ISA account open already for you when you come to do the Bed & ISA.

Bestinvest, 6 Chesterfield Gardens, Mayfair, W1J 5BQ

Important information

This article should not be considered a personal recommendation for you to invest, or to transfer your investments. If you are unsure about the suitability of any investment, you should seek professional advice.

Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Any investments sold as part of a Bed & ISA could generate a capital gain or loss. You may not buy back the same number of units/shares due to market movements, bid-offer spreads and dealing commissions.

Before carrying out a Bed & ISA, please ensure you are familiar with our dealing costs, which can be found in our Key Facts document.


Past performance is not a reliable indicator of future returns

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

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