Can I hold Tesco shares in an ISA wrapper?
27 January 2022
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
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!