Transfer from SAYE into an ISA

I have a SAYE share scheme maturing in January ‘24 worth approximately £23k. It is my understanding that if I transfer the shares into an ISA within 90 days of exercising the share option (£20k in the 23-24 tax year, and the remainder in the 24-25 tax year) there will be no CGG liability. For the transfer into the ISA not to be liable for CGT does the transfer need to be “in specie” (or will “bed and ISA” qualify too)?

Hi,

The guidance at below advises that you will not pay capital gains tax if you transfer the shares to and ISA withing 90 days of the scheme ending.

Tax and Employee Share Schemes

 If you do not transfer your shares to a pension immediately when the scheme ends, you can still transfer them up to 90 days later. You may have to pay Capital Gains Tax if they go up in value between when you buy them and when you transfer them. 

Thank you.

In order for the transfer of shares into an ISA - within 90 days of the scheme ending - to not incur CGT, does the transfer need to be conducted “in specie”? (Please note, my question is in relation to ISA, not pensions).

Hi
It must be the transfer of the shares in their current form rather than in the equivalent amount of cash.
Transferring your shares to an ISA
You can transfer up to £20,000 of employee shares into a stocks and shares Individual Savings Account (ISA) if you have shares in a:
Save As You Earn (SAYE) scheme
Share Incentive Plan (SIP)
Your ISA provider must agree to the transfer.
You will not have to pay Capital Gains Tax on any gains you make on your shares if you move them to an ISA.
You must transfer your shares to your ISA within 90 days of when you took out your SIP or SAYE shares.
These shares will count towards your £20,000 ISA limit.
They cannot be in addition to the limit.
Ask your employer or ISA provider for more information on how to transfer.
Individual Savings Accounts (ISAs)
Types of ISA available, the tax-free ISA allowance, withdrawing money and transferring ISAs.
Thankyou.


 

Hello, After a transfer; is there any holding requirement? e.g. Can I just sell the shares and withdraw the cash the next day without generating CGT? Tom

Hi,

If you do not transfer your shares to a pension immediately when the scheme ends, you can still transfer them up to 90 days later. You may have to pay Capital Gains Tax if they go up in value between when you buy them and when you transfer them. You can see guidance here: 

Tax and Employee Share Schemes

Thank you.

Hi...Just so I am clear on this. Suppose i have a SAYE scheme which on maturity in October is valued at £40,000. I can transfer £20,000 into an ISA and it is sheltered from CGT etc. As the next tax year is more than 90 days away is there any way I can put the remaining £20k into a 'shelter' for the following Tax year's ISA allowance without triggering CGT? If the answer is NO. ten can i transfer £20k into an ISA and £20k into a pension? If i can do this, then when doing a self assessment I assume i could gross up the pension contribution. Please confirm if this is right and what the grossed up amount would br. Thanks

Hi,

You can only transfer £20000 to an ISA within the 90 days to avoid any CGT upon selling the shares. We cannot advise you on what to do with the remainder and you may therefore wish to speak to a financial adviser.

Thank you.

If a SAYE is maturing do you then have to withdraw the cash from the company shares provider and pay the cash in to an ISA within 90 days? If it is a transfer of the shares, how do I find an ISA provider that will accept the transfer of the shares?

Hi twitch4685,
Please refer to Tax and Employee Share Schemes.
For the ISA, you can refer to any search engine to find this.
Thank you.