1. A tidy, tax-efficient portfolio
It is natural to acquire investments piecemeal over time. As a result portfolios often include a periphery of impulse buys, failed newspaper tips, investments bought for some long-forgotten reason, inherited investments, demutualisations and holdings resulting from takeovers and mergers.
This means portfolios can become unwieldy, containing holdings which are insignificant or no longer fit for purpose, detracting from the core holdings. These portfolios become increasingly difficult to administer, complicate tax returns and add an unnecessary burden as the years go by. Bed & ISA can offer a solution. The investments which are no longer required can be sold, and the proceeds used to fund this year’s ISA.
No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.
2. Using the capital gains tax allowance
The FTSE All-Share Index has risen by 48.9% in the last five years, and more than 180 companies’ share prices have doubled during this time.
This means many investors will be showing significant gains on some of their holdings, with a potential capital gains tax liability when they come to sell. A Bed & ISA could help. If investments showing a capital gain are sold and the proceeds used to open or top-up an ISA, gains within the £11,000 a year capital gains allowance are free from tax, and once within the ISA any future gains are completely free from tax. If not used before 5 April this allowance is lost forever. Remember, tax rules can change and the benefits of a share exchange or Bed & ISA will depend on individual circumstances.
How to shelter existing investments from tax
Whether simply tidying up small or forgotten holdings, or harvesting capital gains on existing investments, a Bed & ISA is easy in our Vantage Service. Holdings are sold free of charge and then the proceeds used to repurchase the same or different holdings within the ISA. Repurchases will be subject to our usual dealing commission. For more details please see our charges page.
For investments held in the Vantage Fund & Share Account the easiest way to Bed & ISA is online.
Anyone holding share certificates, or wishing to deal by post simply needs to read the Vantage Terms & Conditions and Vantage Key Features, then complete the Vantage Bed & ISA Application Form and return it to our office. Investments held with another company need to be transferred to the Vantage Fund & Share Account prior to applying. Our Vantage Service is designed for people who prefer to make their own investment decisions. If you are unsure of the suitability of an investment please seek advice.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.