Hello,
I'm allowed to buy my employer's shares at a 15% discount. Would I be able to put these shares into an Equity ISA? If so, would anyone recommend any ISA products in particular?
Many thanks,
Nick
Hello,
I'm allowed to buy my employer's shares at a 15% discount. Would I be able to put these shares into an Equity ISA? If so, would anyone recommend any ISA products in particular?
Many thanks,
Nick
The usual way to put shares in an ISA is to sell them and buy them within the ISA wrapper, so probably not directly (but I don't know for sure).
Equity ISAs tend to charge fees that make the ISA wrapper unattractive for small, short-term and low dividend equity investments. The main tax advantage is for capital gains - and small, short-term holdings are unlikely to attract capital gains above the 8K or so threshold. High rate tax payers don't have to pay income tax on dividend income in an ISA, but this advntage might not outweigh the charges unless the holding and dividend income are large. Typical ISA charges (excluding dealing etc.) are 1% or so a year with a minimum of the order of £50, but you can beat this if shop around.
If you have sufficient income and capital gains for these things to worry you I'd still prioritize other investments for your ISA allowances (e.g., cash, bonds etc.).
Thom
If you look at isagn.pdf on the HMRC web site, you should find that shares from an employer's scheme can be put directly into an ISA.
Isagn.pdf is the Isa Managers' Guidance Notes. It's also in html, I believe.
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