Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.
What is Bed and ISA?
You can use a Bed and ISA to sell investments in a Trading Account and buy them back in an ISA.
It’s a good way to take advantage of any unused ISA allowance. Once in an ISA, those investments will be sheltered from tax.
You'll only pay a trading fee on the re-purchase - not the sale.
It is quick and easy to Bed and ISA with ii - read our guide below.
Select your accounts, check your remaining ISA subscription, and choose the investments you want to Bed & ISA.
Leave the rest to us. We’ll let you know when the process is complete.
How Bed and ISA works
Once you have instructed a Bed and ISA, we will sell your chosen investments from your Trading Account and immediately repurchase them in your ISA.
We will only charge trading fees on the repurchase. This can be covered by any free trade credit in your account. There are no fees for the sale.
We will calculate how many shares we can repurchase in your ISA, after deducting:
- Trading fees on the repurchase (usually £7.99)
- Stamp Duty on the repurchase (0.5% on most UK shares)
- Any price movements between the sale and purchase price
As such, you may end up with slightly fewer shares in your ISA than you had in your Trading Account.
Bed and ISA costs
- You will not pay a trading fee on the sale of your existing shares, only the re-purchase. This usually costs £7.99.
- If you have unused trading credit in your account, this will be put towards the cost.
- Government stamp duty of 0.5% also applies to the repurchase of most UK shares.
Bed and ISA tax rules
When you sell investments held in a standard Trading Account, you will pay Capital Gains Tax on any profits above your annual allowance (£12,300 for 2022/23).
However, moving the investments to an ISA means you won't pay CGT on those profits in future.
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.