Bed and ISA

[alexuss (Alex Suss)]

How will Bed and ISA work with Freetrade when new ISAs open in April 2019. Will investments have to be manually sold off and then bought again, which means being affected by stamp duty and the bid-ask spread again. Or will Freetrade do this in a way that investments do not occur these charges.

[Freetrade_Team1 (Freetrade_Team)]

You won’t have the option to use Bed & ISAs in April. But it’s something that we’ll consider offering in the future.

In the meantime, Nicola explained the process for transferring between your regular Freetrade account (GIA) & your Freetrade ISA here -

@Nicola

The only way of moving stock from a GIA to an ISA is to sell it and buy it back, as unfortunately you cannot transfer stock between the 2 accounts in this direction.

What we are able to do is help you buy back into your ISA as quickly as possible, so the price you get is as close as possible. So, if you place your sales in your GIA, once they have executed, let us know and we will move the money to your ISA before the trade has settled. This means you can buy the stock back in your ISA on the same day

Regarding doing this for free, you are right that you would need the money to be in your ISA first, so you couldn’t queue both sides at the same time as the buys would fail. To get both sides with no dealing commission you could queue the sale on day 1 and queue the buy after it had traded and we had moved the cash so it would likely execute on day 2.

[alexuss (Alex Suss)]

So I assume this means I have to pay the spread and stamp duty again.

[Vlad (Vladislav Kozub)]

Seems like it is simply unavoidable, yes

[alexuss (Alex Suss)]

I will just move to cash earlier then, on a market high if I can. Hopefully when the new ISA is released, the market is down and I can make up the 0.5% stamp duty and spread. I’m not moving a lot of money, probably around £4,000 around then.

Hargreaves were the worst with Bed and ISA, they took 6 weeks one time to do it for free, i.e. I pay no commission and no stamp duty. But I was moving a much larger amount then.

[bitflip]

Please see

[Feature Request ] Internal GIA to ISA transfers (Bed and ISA)

Original request from March 2019 has been edited to clarify what is required and at the same time to help people who want to make a transfer before the functionality requested is implemented: According to present HMRC rules governing ISAs, shares can be directly transferred into an ISA if they have been acquired from a schedule 3 SAYE option scheme or a schedule 2 SIP. It is not possible to directly transfer shares from a GIA to a ISA in any other circumstance. So if you want to move any shar…