Interactive Investor

ISA FAQs

Can you transfer shares into an ISA?

If you’re looking to move shares into a Stocks and Shares ISA, you need to complete what’s known as a Bed and ISA transfer.

Can you transfer shares into an ISA?

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.

Trading stocks and shares can be an effective way of generating more funds for your future. But transferring shares into an ISA might be the ideal way to make that money go further. This is called a Bed and ISA transfer.  

Here’s everything you need to know about the process and why it may be the right choice for you.

What is a Bed and ISA transfer?

Bed and ISA” is the name given to the process of transferring your shares from a general investment account (like a Trading Account) into an ISA. 

On the surface, it might sound complicated, but we make it easy by automatically handling the transfer for you. This involves selling your shares and immediately repurchasing them in your ISA. 

You will be charged Capital Gains Tax (CGT) on the sale of the stocks if your profit exceeds £3,000 (tax year 2024/2025).

Something to be aware of is that this is affected by your annual ISA allowance. You have a yearly allowance of £20,000 to put into your ISAs, so you will need to be below that limit to repurchase your shares. 

You also have to consider that you may not be able to repurchase the exact number of shares sold as the price can fluctuate, and you may be charged trading fees and stamp duty on the repurchase. 

How to transfer shares into an ISA?

Transferring shares into an ISA can be done in three steps:

1

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

2

Select your accounts, check your remaining ISA subscription, and choose the investments you want to Bed and ISA.

3

Leave the rest to us. We’ll let you know when the process is complete. 

What are the benefits of transferring shares into an ISA?

The main benefit is the tax efficiency of an ISA compared to a general investment account. Shares in a Trading Account are subject to CGT, so you pay tax on any profits over £3,000.

With ii, you’re also only paying a simple monthly fee, not a percentage cut that’s going to eat into your profits. You can open an ii Stocks and Shares ISA from just £4.99 a month.

Can I transfer shares from one ISA to another?

What happens if you already have a Stocks and Shares ISA and want to transfer those into a new ii account? That’s something you can do. You can transfer shares directly from one ISA account to another. 

Even better, when you do this, you do not use any of your ISA allowance, giving you the freedom to invest even more money. 

Top up your ISA today

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