Can You Transfer Shares into an ISA Without Selling?

Shares cannot be moved into an ISA directly, but you can use a Bed and ISA transfer. Learn how it works, benefits, and ISA transfer rules.

ISAs provide tax-free growth and income, making them a valuable way to hold investments. However, UK rules do not allow direct transfers of shares into an ISA from a standard investment account. Instead, you must sell and repurchase them using a process called a Bed and ISA transfer.

This guide explains how to transfer shares into an ISA, the benefits, and whether you can move shares between ISAs.

What is a Bed and ISA Transfer?

A Bed and ISA transfer allows you to sell shares held outside an ISA and repurchase them within an ISA. This enables you to benefit from tax-free growth and dividends inside the ISA.

How a Bed and ISA Works

  1. Sell shares held in a general investment account.

  2. Immediately repurchase the same shares within an ISA.

  3. Avoid tax on future capital gains and dividend income.

This process ensures your investments are held in a tax-free ISA wrapper while remaining exposed to the same assets.

How to Transfer Shares into an ISA?

To move shares into an ISA, follow these steps:

  1. Check if your provider offers a Bed and ISA service. Many investment platforms facilitate this process.

  2. Sell your existing shares. This may trigger Capital Gains Tax (CGT) if gains exceed the £3,000 CGT allowance (2024/25 tax year).

  3. Repurchase the shares inside your ISA. This must be done within the same ISA allowance (£20,000 per year).

What Are the Benefits of Transferring Shares into an ISA?

  • Tax-Free Growth: No Capital Gains Tax (CGT) on future gains inside the ISA.

  • No Dividend Tax: Dividend income is tax-free within an ISA.

  • Easier Estate Planning: ISAs can be passed to a spouse tax-free.

Moving shares into an ISA helps shield investments from tax, making them more efficient in the long term.

Can I Transfer Shares from One ISA to Another?

You can transfer shares between Stocks & Shares ISAs without selling them. This is called an ISA transfer, and it maintains tax-free status.

  • You must transfer the entire ISA balance if moving current-year contributions.

  • You can transfer part of an ISA from previous years.

  • Always use an ISA transfer form—do not sell the shares yourself.

Final Thoughts

Shares cannot be moved into an ISA directly, but a Bed and ISA transfer allows you to sell and repurchase them within an ISA. This provides tax-free growth and income. If you are considering transferring shares, check your Capital Gains Tax liability and use a provider that offers a Bed and ISA service.

For more details on ISA rules and transfers, visit GOV.UK.