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Can I hold Tesco shares in an ISA wrapper?

27 January 2022

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Question by Lina

I have a large amount of Tesco shares which I want to hold under ISA wrapper but I don’t know which company can do this for me.


Answered by Joshua Gerstler

Hi Lina,

The good news is that most ISA providers will allow you to hold your Tesco shares to them.

The bad news is that you cannot simply transfer them into the ISA; you have to sell them first and then buy them again in the ISA.

This is often known as "Bed and ISA".

Before you do this, check if you are likely to incur any Capital Gains Tax on the sale of your Tesco shares. If so, you may want to spread your sales over a number of years so that you do not exceed the Annual Allowance.

You should also check how long the process is going to take so that you do not spend too much time out of the market.

I hope this helps!

Josh

Answered by

Joshua Gerstler

Chartered Financial Planner

I have been working in Financial Services for over 16 years. I started out at Deloitte where I trained and qualified as a Chartered Accountant before moving to Financial Advice/Planning at The Orchard Practice in 2011.