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Bed and ISA

Open or top up an ISA with existing investments

Bed and ISA now

Important information - Investments can go down as well as up in value, so you could get back less than you put in. The information on this page isn't advice - please ask us for advice if you’re not sure which investments are right for you. Tax rules for ISAs can change and their benefits depend on your circumstances.

What is a Bed and ISA?

Bed and ISA might sound complicated, but it's in fact a very easy process.

It simply involves selling investments that you hold outside an ISA and using the proceeds to open or top up your ISA - all with a single instruction.

You can choose to repurchase the same investments, buy another investment or just hold cash.

It's flexible, cost-effective and is a great way to make use of your valuable ISA allowance.

What are the benefits

  • Shelter from tax - pay no more UK income or capital gains tax once your investments are in the ISA
  • Harvest gains - sell investments outside your ISA to generate a capital gain or loss and use your annual capital gains tax exemption (up to £11,700 for the 2018/19 tax year)
  • Use valuable allowance - take advantage of your £20,000 ISA allowance even if you don’t have any spare cash to invest
  • Cost-effective - shelter investments in ISAs at no extra charge for funds and just 0.45% (maximum of £45 per annum) for shares. View our ISA charges

Please remember, tax rules can change and any benefits will depend on your personal circumstances.

How much does a Bed and ISA cost?



  • Free to sell
  • Repurchasing in ISA costs between £5.95 and £11.95 per deal*


  • Free to sell
  • Repurchasing in ISA costs 1% (minimum of £20 and maximum £50 per deal)*



  • Free to sell
  • Repurchasing in ISA is free**


  • Free to sell
  • Repurchasing in ISA is free**

*Share dealing charges depend on the number of trades you've placed in the previous month. We also charge a £5 commission on share sales of less than £500. When buying the same shares back within the ISA, there'll be a small difference in price due to the bid offer spread. Along with commission and stamp duty, this means you won't buy back the same number of shares as you sold.

**When buying funds back there may be an initial charge or bid offer spread, but most of the time our discounts reduce or eliminate this altogether. Due to the way these investments are dealt, the re-purchase is often not placed until the following working day. This means you could be out of the market for a short period.

What did our clients say about Bed and ISAs?

Simple and straightforward

MR MANN, Norfolk

The website is so user-friendly

MS KONOP, London

How to Bed and ISA your investments

Placing a Bed and ISA instruction online is easy. In fact, over 94% of our clients said the process was good, very good or excellent.*

So if you already hold shares or funds in an HL Fund and Share Account, all you need to do is:

  1. Log in to your account
  2. Follow the Bed and ISA links next to your holding

Alternatively, you can download our Bed and ISA form and return it to our office.

*HL Client Satisfaction Survey, May 2018, 354 respondents

Bed and ISA FAQs

  • We'll aim to place your first deal as soon as possible - usually within four working days of receipt. However, when dealing volumes are unusually high (such as the end of the tax year), there may be a delay.

    'Placed' for shares means the instruction will be dealt at the live market price. For funds, the instruction is passed to the fund manager to be dealt at the fund's next valuation point.

  • No. When selling and buying shares or funds, there'll normally be a difference in price due to the bid-offer spread, and/or the price moving on your fund. Together with the dealing commission and stamp duty (where applicable), this means you won't buy back the same number of shares or units as you sell.

    We always try to minimise the bid-offer spread on Bed and ISA share trades and we’ll buy back your shares immediately after they’ve been sold.

  • Yes. Simply complete a Bed and ISA form and return it to our office along with your share certificates. You may also wish to complete a CREST transfer form for each stock/company that you’re transferring. Your share certificates will usually be re-registered and available to trade three working days after we receive your completed CREST transfer form.

    Alternatively, after processing your certificated Bed and ISA we'll send you a CREST transfer form which must be signed and returned to our office. Balance share certificates – where applicable – will be returned on completion of the Bed and ISA.

  • Yes, it’s possible to Bed and SIPP your investments. It’s the same process as a Bed and ISA instruction, except your investments are bought back in a SIPP instead of an ISA.

    When you invest in a SIPP, the government will give you up to 46% tax relief on the money you pay in. And once your money is in a SIPP, you won’t have to pay tax on any gains or income your investments make. But remember, you can’t normally access money in a pension (SIPP) until at least 55 (57 from 2028).

    If you already hold shares or funds in an HL Fund and Share Account, you can Bed and SIPP your investments by:

    1. Logging in to your account
    2. Following the Bed and SIPP links next to your holding

    Alternatively, you can download our Bed and SIPP form and return it to our office.

    Bed and SIPP now