RE: Next few days…30 Mar 2022 11:47
I am looking to do this with some other stocks.
My circumstance may be different, but hopefully it may still help.
I retired early a couple of years ago with a tax free lump sum, inherited a small sum, and moved house to a rural area which generated funds. As a result my wifes ISA and mine have been maxed out for the last couple of years, so the bulk is invested outside an ISA.
I am unlikely to have large sums to invest going forward, but have the enviable problem of moving stocks into the two ISAs over the next few years.
I have come to the conclusion that with one possible exemption (AV.) there is no rush as long as I max out my ISA allocation each year.
I am priortising those stocks that pay the biggest dividends as there is not much else I can do to manage the tax liability after the £4000 allowance ( spread over the two bed accounts).
CGT is easier to manage as I can manage that to some degree making use of the £24000 allowance ( again over the two bed accounts).
In the current volitile climate I am waiting for SP movements to settle a little, as to transfer stock manually will take me 2 to 3 days. I need to sell the stock in the bed, wait the 2 days for funds to clear, transfer that cash to my current account and then back into the ISA to re-purchase the stock.
It may be possible to sell the bed stock and buy the ISA stock over the phone through my bank, which could be completed in a day, but I will check with my bank nearer the time.
With some stocks in more normal times I can look at price movements around the XD dates, and it might be possible to sell high pre XD and do better than taking the dividend when accounting for the tax etc.
My only real advice is take your time you have 12 months, and can manage the CGT. Don't forget you can also offset CGT implications with any loss incurred in both this and the last tax year.
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