Bed and ISA rules

Hi, me and my spouse have a Joint (50/50) Brokerage Account. In the last 30 days, we have purchased at various times 600 shares and sold the same shares (value less than £20 000) at separate times and currently our total realized profit is £200. If I purchase them again (within 30 days) in my ISA (Stock and Shares), do I still own Capital Gains Tax? If that is the case, how exactly I can "Bed and ISA" if my ISA provider does not provide this service, which is just one sale order and another buy order combined ...

Hi 
You would have a capital gain / loss on the disposal of the shares.  
Only after they are acquired from within your ISA, would they be exempt from capital gains tax.  
Please have a look at helpsheet HS284.  HS284 Shares and Capital Gains Tax (2024)
Thank you.

In this case how Bed and ISA actually works? And under another scenario: If I sell from SIP (instead from a normal brokerage account) and purchase the same security and amount in ISA, I suppose I do not own any CGT? Please confirm.

Hi
We cannot comment on scenarios, we can only provide general information / guidance in this forum.
For an answer to a detailed question of this nature, you would need to contact our self assessment helpline on 0300 200 3310 or seek professional advice.
Thank you

Hi, please provide your guidance - I have shares in SIP and if I sell them I would have Capital Gains. If I sell these shares and purchase them again in my ISA within 30 days, do I need to pay any CGT?

Hi
When you transfer you dispose of them from the SIP and it would be a normal disposal for capital gains,the 30 day rule does not apply to Bed and ISA transactions and the initial disposal results in a capital gain or loss. The the investments will have no TAX/ CG in the future within the ISA.  Further guidance is also available at Tax and Employee Share Schemes

According to HMRC rules (https://www.gov.uk/tax-employee-share-schemes/share-incentive-plans-sips) for Tax and Employee Share Schemes: "You’ll NOT pay Capital Gains Tax on shares: .... - transferred to an Individual Savings Account (ISA) within 90 days of taking them out of the plan" How exactly the shares are "transferred" if one can only deposit money in ISA?

In addition to the above, according to https://www.gov.uk/tax-sell-shares : "When you do not pay it You do not usually need to pay tax if you give shares as a gift to your husband, wife, civil partner or a charity. You also do not pay Capital Gains Tax when you dispose of: shares you’ve put into an ISA or PEP shares in employer Share Incentive Plans (SIPs)..." Therefore if I dispose shares from SIP, I do not own any Capital Gain Tax, please confirm

Hi,

You would need to open a stocks and shares ISA to deposit the shares from a Share Incentive Plan (SIP). This gives you the option to regularly save and buy shares.

If you get shares through a SIP and keep them in the plan for 5 years you will not pay Income Tax or National Insurance on their value.

You might have to pay Capital Gains Tax if you sell the shares.

You’ll not pay Capital Gains Tax on shares:

• sold, if they were kept in the plan until the point of sale
• transferred to an Individual Savings Account (ISA) within 90 days of taking them out of the plan
• transferred to a pension, directly from the scheme when it ends

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.