ISA tech info

Question 1

Bed and Isa process OEIC

Answer 1

1. Sell OEIC holdings to raise £20k x 2 fund ISA allowance G & S
2. Capital gain likely (base cost-sale cost + reinvestment income -sale+purchase costs-after this you’d deduct same yr loss + cgt exemption -previous year registered loss then apply tax)
3. Gain likely to be within exemption 53.3% base cost & 46.7% gain-around £9k
4. Invest cash into S & G isa
5. Either buy back shares held before in OEIC or invest in ones more suited to G ethical preference and S adventurous ATR i.e AIM shares and benefit from 100%BR relief in 2 years

Question 2

Bed to isa co shares

Answer 2

1. Assign £20,000 to grace on no loss no gain basis as they are married and live together
2. certificated paper versions mean have to sell before can invest electronically. Lose voting rights, company reports and co perks. Paper more expensive. Nominee cheaper, faster, held in name of co and stockbroker pays your divis’s .
3. Sharepooling used if Simon purchased shares at different times to calculate loss or gain
4. Cash to invested in ISA in either same shares or new assets based on ATR/preferences. Will be held in electronic form.