Interactive Investor

Bed and ISA

Use your existing investments to fund your ISA in three easy steps with our Bed and ISA service.

interactive investment bed isa

What is Bed and ISA?

Bed and ISA is a straightforward way to fund your ISA using your existing investments. You sell the stocks and shares you hold in your Trading Account, then buy them back within your ISA. It means you get to take advantage of the tax-efficient benefits of an ISA for your investments.

Bed and ISA benefits

  • There is no additional tax to pay on capital gains, most dividends or interest you make once you have transferred your investments into an ISA
  • You do not need to use cash to take advantage of your £20,000 annual ISA allowance, as you can use existing taxable investments instead
  • We do not charge commission on the sale of assets in your Trading Account

Why Bed and ISA with us? 

  • Simple online process
  • Open a Stocks & Shares ISA for no additional fee
  • Benefit from our great value, choice and expertise

How to Bed and ISA your investments

  • We sell your investment holdings in your Trading Account
  • We use the money to buy back the same investments within your ISA
  • We do both trades at the same time to limit potential share price movement*
  • All Bed and ISA instructions will be executed as soon as practically possible

*When buying the shares back within the ISA, there will be a small price difference because of the bid-offer spread. Because of this, purchase fees and stamp duty, you will buy back a slightly smaller number of shares. Please note, if your holding is in a small-cap or AIM share, we may be able to secure a lower bid-offer spread by dealing it directly than by making an online trade. Please call us to discuss.

How Bed and ISA works


Log in to your Trading Account and choose Bed and ISA from the cash & transfers menu.


Select your accounts, check your remaining ISA subscription, look up your existing holdings and complete the form.


Preview and submit your instructions, then leave the rest to us. 

Bed and ISA costs

  • No commission is charged on the sale of stocks, but repurchase costs apply
  • For online requests, your online commission rate is charged on the repurchase of stocks within your ISA
  • For telephone and postal requests, the telephone trade commission rate is charged on the repurchase in your ISA
  • Government stamp duty of 0.5% also applies to the repurchase of all UK registered stocks 

Bed and ISA tax rules

When you sell investments held in a standard Trading Account, any gains above your annual allowance (currently £12,300) will be subject to capital gains tax (CGT). However, moving the investments to an ISA means you won't pay CGT on any future gains.

With Bed and ISA, you will pay 0.5% stamp duty when repurchasing the stocks in an ISA.

Understanding the risks

The value of your investments and the income derived from them can go down as well as up and you may not get back all the money you put in. The tax treatment of this product depends on your individual circumstances. 

Please remember, the value of your investments may go down as well as up and you may not get back all the money that you invest. If you're in any doubt about the suitability of a stocks & shares ISA, you should seek independent financial advice. Please note, the tax treatment of this product depends on the individual circumstances of each customer and may be subject to change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.

An award-winning ISA

Open an ISA, or transfer an ISA or Child Trust Fund to us and you will benefit from an award-winning service at the low price of just £9.99 per month. In return, you will enjoy access to our full range of services, news and insight, as well as £7.99 free credit each month to use against any trade. We are proud to have been named Best Stocks & Shares ISA Provider at the 2021 Online Personal Wealth Awards.

Bed and ISA FAQs