RE: Tils Nasdaq20 Sep 2021 10:48
Just received from HL, regarding my queries. (I have TILS in my ISA was F&S accs.)
Dear Mr D-Geeman,
Thank you for your messages.
At the time of my colleague's message we did not have any details about the movement of Tiziana Life Sciences plc (TILS) to the NASDAQ; only the proposed movement. As we offer many holdings that trade on the NASDAQ without issue, it was believed that this transition would be much the same.
However, in the terms of the movement to NASDAQ, Tiziana Life Sciences has changed which settlement system they will be using going forward--making it unable to be settled on our own platform.
If a particular stock doesn't settle within the CREST system used by us to settle international securities, we are unable to facilitate trading on our own platform.
CREST is a UK-based Central Securities Depository that holds UK equities and UK gilts as well as Irish equities and other international securities. CREST allows shareholders and bondholders to hold assets in a dematerialised stock, i.e. electronic form, rather than holding physical share certificates.
In an effort to disrupt our clients’' portfolios the least, we have brought in HSBC as a third party to allow our clients to continue to deal in this share from within their HL account. However, as you have been informed, this will come with additional dealing charges.
I am sorry for your disappointment and hope that my explanation can shed some light on the situation and the reasoning behind decisions made.
At this time, you do not need to remove TILS from your HL Stocks & Shares ISA and they are able to remain separate. This will mean if you sell from each account there will be two dealing charges, but any assets held in the ISA will be sheltered from any income or capital gains tax.
If you would prefer that they be combined into a single holding, you have two choices:
1. Remove assets from the ISA and into the HL Fund & Share Account, thereby losing the tax-efficient wrapper on those shares and not being replace that value without using your current year allowance. This would mean any future sale from the Fund & Share account would be liable to income/capital gains taxes.
2. Manually Bed & ISA the TILS shares into your ISA account, of which you have used £13,262.39 of your annual allowance. This process would mean that you would have to sell the holding currently at a loss in your Fund & Share account, move the cash, and repurchase into the ISA. This process would mean realising the loss currently, but any future sales would be sheltered from income/capital gains tax.
I hope this has been of assistance. If you have any other questions, please get back to me.
Kind regards,
K***** *****n
Hargreaves Lansdown