Bed & ISA or Bed & SIPP
We believe it is 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.
Use existing investments to open your Stocks & Shares ISA or SIPP
Our Bed & ISA and Bed & SIPP services allows you to sell your shares free of charge and use the proceeds to open - or top up - an ISA or SIPP. You can then immediately buy the same shares back, choose another investment or hold cash.
Four ways you could benefit
How much does a Bed & ISA/SIPP cost?
Free, for postal and online Bed & ISA/SIPP applications. We reserve the right to charge £5 commission on share sales of less than £500.
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|
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 as you sold.
Selling and buying funds
There is no dealing commission to sell or buy funds in Vantage. When buying funds back there may be an initial charge or bid-offer spread, but most of the time our discounts can reduce or eliminate this altogether. When you Bed & ISA/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.
ISA/SIPP management charge
The charges are the same to hold funds in the Vantage ISA, Vantage SIPP and Fund & Share Account, so the ISA tax benefits do not cost extra. There is a tiered annual charge to hold funds in the ISA and SIPP, with a maximum of just 0.45% per year.
Shares, investment trusts, ETFs, gilts, and bonds incur an annual fee of 0.45% (maximum £45 a year for the ISA and £200 for the SIPP).
How to Bed & ISA/SIPP your investments?
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 & Share Account and you have online access, you can Bed & ISA/SIPP your investments online.
Alternatively, if you hold the share certificate, or would prefer to apply by post, please complete and return a Bed & ISA/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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If you would like to find out more about ISAs and how to invest, claim your copy of our free guide to investing in ISAs.Request your free ISA guide