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Shares into an ISA

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SurreyGuy | 13:42 Mon 19th Mar 2007 | Personal Finance
5 Answers
I'm looking into setting up a cash ISA and have been told that I could put my Standard Life shares (or the proceeds from them?) into the ISA.

Is that -

a) right?

b) advisable?

T.I.A.

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a yes (proceeds)
b depends on your attitude to risk
Question Author
Thanks.

The ISA is going to be used to pay off some of my mortgage.
Yes, you will be able to put your Standard Life shares into an EQUITY ISA, but only if you asked for a share certificate at the time you received them, rather than them being held in a nominee account. This could be a self-select ISA, or I believe Hargreaves Lansdown, financial advisers will accept them. However, bear in mind that a single holding in one company is always more riskier than holding unit trusts where you investment is pooled over the shares of many companies and therefore the risk is reduced.
Or, you can sell your shares and put the money in a Cash ISA up to a limit of �3000 each tax year.
Just remember that if you received free shares in the recent float, it may be advisable to hang onto them until after the end of July 2007 as they will be issuing additional free shares to everybody who is still hold their existing shares.
I clicked "Submit" too soon !
If you want to use the proceeds to reduce your mortgage, I'm not sure why you're bothering to set up a cash ISA simply to reduce it some time in the future.
Why not simply use the proceeds to reduce your mortgage now? This would make more sense longterm as every year you would be paying mortgage interest on a lower outstanding mortgage loan and this would save you more money..
Question Author
Thanks Wendy S.

My shares are the free ones that were issued when SL floated(?).

My mortgage has been running for 3 months and the cash ISA was suggested by my IFA.

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