Bed & ISA or Bed & SIPP
We believe it's vital to shelter as much of your capital from tax as possible using an ISA or SIPP. However, if you don't want to invest any new money this tax year but already hold shares outside a tax wrapper a Bed & ISA, or Bed & SIPP for investments earmarked for retirement, may be an efficient solution. See below for full details including charges and restrictions.
Use existing investments to open your Stocks & Shares 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
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.
|Share deals in previous month||0-9 deals||10-19 deals||20+ deals|
|Commission per deal||£11.95||£8.95||£5.95|
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.
ISA/SIPP Management charge
We make no charge for holding more than 2,200 funds and will even pay you a loyalty bonus of up to 0.5% on more than 1,000 funds. A small number of other funds are subject to a platform fee of £1 or £2 per holding, per account, 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. If you Bed & ISA/Bed & SIPP a Unit Trust or OEIC, due to the way these investments are dealt, in most cases the re-purchase will not be placed until the following working day. As a result, you could be out of the market for a day.
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 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.
Tax rules can change and the reliefs depend on your personal circumstances. Also the value of investments can fall as well as rise and therefore you could get back less than you invested. You cannot normally access money in a pension until at least age 55.
Your shares will be sold in a Bed & ISA/SIPP and the proceeds re-invested, the sale could generate a capital gain (or loss). You will not buy back the same number of shares because of the bid offer spread and stamp duty.
Our service is for people who are comfortable making their own investment decisions. If you have any doubts about the suitability of an investment, you should seek expert advice.
Have a question?
Call us on 0117 900 9000
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