SAYE (Sharesave) - Shares Go Ex-Dividend During 90 Day Transfer to ISA

Hi, I have commenced the process of transferring matured SAYE shares to my S&S ISA within the 90 days window(deadline is end June). The shares are to go Ex-Dividend shortly and likely before the shares complete the transfer to the ISA (they currently sit in a Corporate Sponsored Nominee account waiting transfer settlement with the iSA provider). I am trying to clarify how these dividends should be treated for the purposes of the £500 dividend tax allowance. I can’t seem to find any guidance on the 2 options: 1. As the dividends are recorded on shares when formally outside of an ISA wrapper, they are eligible for dividend tax should total eligible dividends in 2024/25 exceed £500. 2. As the dividends will be directly attributable to shares which will be within an ISA within 2024/25 (and are within a recognised transfer process), they do not need to be considered from a dividend tax allowance perspective. Any advice appreciated. Many thanks.

Hi,

Shares held in an ISA are not taxable and as such do not count towards the Dividend Allowance.

Thank you.