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 shares from a GIA to a ISA you must sell them. Then move the proceeds to an ISA and re-buy them there.
- This request is for Freetrade to have an automatic sell in a GIA and repurchase in a ISA facility. Such a share exchange facility is commonly known as a Bed and ISA.
- You can already manually sell, and then request support to transfer the proceeds to an ISA see [Feature Request 🔧] Internal GIA to ISA transfers (Bed and ISA) - #5 by Nicola
*When you sell shares in a GIA to rebuy them in an ISA there is always the possibility that you will lose money when you move the cash between the two accounts because the buy price in the ISA is much higher than the sell price in the GIA. This might be exacerbated by the length of time you are “out of the market”. - Sale of shares in the GIA constitute a crystallisation event for capital gains gains and losses. So be mindful of the annual CGT allowance when you make the sell/purchase request.