Bed and ISA
Open an ISA with your existing investments
Bed and ISA transactions allow you to sell existing investments and use the proceeds to open or top up an ISA account. You can then buy the same investments back, choose other investments or simply hold the cash within your ISA.
Reasons to carry out a Bed and ISA
Bed and ISA transactions let you take advantage of your tax-free ISA allowance even if you don’t have any new money to invest. In an ISA any interest from cash savings and income from dividends are free from Income Tax, and your investment gains are safeguarded from Capital Gains Tax.
Capital Gains Tax with a Bed and ISA
When you sell your investments to begin your Bed and ISA transaction you may have to pay Capital Gains Tax if your gains for the current year exceed the annual allowance (£11,100 for 2016/17). If you make a loss, this could offset any other capital gains you have made this year or in the future.
How to get started
Bestinvest clients using the Online Investment Service can carry out a Bed and ISA by following three easy steps:
Sell the existing investments in your General Investment Account up to the value you would like to move into your ISA, making sure you won’t exceed your ISA limit.
Once the cash is visible in your account (usually 3-4 days later), call our team on 020 7189 2400 and ask them to transfer the cash from your General Investment Account to your ISA.
Log in to your account the following day and you can reinvest the cash into the investments of your choice.
Clients of our Investment Advisory Service or Managed Portfolio Service should contact their relationship manager to carry out a Bed and ISA.