Bed & ISA or Bed & SIPP

Use existing investments to open your ISA or SIPP

A Bed & ISA or Bed & SIPP transaction allows you to sell your shares for free (see below) and use the proceeds to open (or top up) an ISA or a SIPP. You can then immediately buy the shares back, choose another investment or hold cash. Please remember, tax rules can change and depend on your personal circumstances.

Four ways you could save tax

1. Whether you buy your shares back or choose a different investment within an ISA or SIPP all future gains will be sheltered from tax.
2. This tax year you can make a capital gain of up to £10,600 before capital gains tax applies, if this allowance is not used it is lost forever. (Selling shares in profit will realise a capital gain.)
3. Selling shares at a loss will realise the capital loss which, once declared, you can carry forward and offset against any gains in the future, effectively increasing your future capital gains tax allowance.
4. If you invest in a SIPP you will also receive tax relief. You could turn £8,000 worth of shares in to £10,000 in your SIPP.

How much does a Bed & ISA / Bed & SIPP cost?

Selling your shares and buying shares back

Sale: Free, for postal and online applications if you are investing the proceeds into the Vantage ISA or SIPP. We reserve the right to charge £5 commission on share sales of less than £500.

Buy Back: Postal applications, 1%, minimum £20, maximum £50 per deal plus 0.5% government stamp duty.

Online applications (per deal) plus 0.5% government stamp duty.

Selling your shares and buying funds

Sale: Free, for postal and online applications if you are investing the proceeds in the Vantage ISA or SIPP. We reserve the right to charge £5 commission on share sales of less than £500.

Buy Back: Nil commission, up to 5.5% initial saving, up to 0.5% annual savings (loyalty bonuses are not available in the SIPP).

ISA/SIPP Management charge

We make no charge for holding more than 2,400 funds. A small number of other funds are subject to a platform fee of £1 or £2 per holding, per month. Check charges on fund factsheets.

Shares, investment trusts, ETFs, gilts, bonds and a minority of funds incur an annual fee of 0.5% (maximum £45 a year for the ISA and £200 for the SIPP).

When buying the same shares back there will be a small difference in price due to the bid offer spread. Therefore together with the commission and stamp duty this means you will not buy back the same number of shares.

How to do a Bed & ISA / Bed & SIPP?

You only need to give us one instruction and we will do everything for you. If you would like to use investments in your Vantage Fund and Share Account and you have online access, you can Bed & ISA / Bed & SIPP your investments online.

Alternatively, if you hold certificated shares, or would just prefer to apply by post, please complete and return the relevant Bed & ISA / Bed & SIPP application form.

Please bear in mind that a Bed & SIPP is a pension contribution to help fund your retirement. You will not have access to your money until age 55 at the earliest. It is your responsibility to check that you are eligible. Please refer to the Key Features of the HL Vantage SIPP for details. If you have any questions please do not hesitate to call our pensions helpdesk on 0117 980 9926.

Remember, tax rules can change and the reliefs depend on your personal circumstances.