BED to ISA help.
Posted: December 7th, 2021, 9:29 am
Hi
While I would not usually consider dividend capture strategies, as I tend to try and pick a stock to hold and would consider myself an investor not a trader, I havea puzzle I need help to solve despite checking online.
The last couple of years I have maxed out my ISA and the wifes ISA so started 2 BED accounts.
I need to start thinking about the next tax year and how best to move stock from the BED account for 2022 and beyond.
I will of course keep an eye on tax implications as I go to minimize losses.
One strategy I am considering is selling after the dividend is declared and on the lead into the ex-dividend date from the BED account, transferring funds into the ISA and buying back the stock post ex-dividend date. I am just not sure how the timing works and if it would be effective.
The problem I have is the time delay, by the time I have sold in the BED, transferred funds to my bank account and moved them into my ISA I am looking at 4 or 5 days and while this delay could work in my favor, my luck suggests it is more likly to work against me.
All things being equal I am transferring the stocks likly to cause the biggest tax liabilities first.
Has anyone done this or can offer any advice or pitfalls to watch out for.
I appreciate that its just advice and any adverse outcome is my responsibility, but it may give me things to consider that I hadn't thought of.
In essence what I'm trying to achieve is to transfer stocks held in my BED into my ISA as efficiently as possible. With some types of stock I am given to understand dividend capture is less efficient (utilities ?) so I will try and make use of the SP changes around the ex dividend date. Others I may benefit from dividend capture.
Thanks in advance for anyone who can find the time to reply.
While I would not usually consider dividend capture strategies, as I tend to try and pick a stock to hold and would consider myself an investor not a trader, I havea puzzle I need help to solve despite checking online.
The last couple of years I have maxed out my ISA and the wifes ISA so started 2 BED accounts.
I need to start thinking about the next tax year and how best to move stock from the BED account for 2022 and beyond.
I will of course keep an eye on tax implications as I go to minimize losses.
One strategy I am considering is selling after the dividend is declared and on the lead into the ex-dividend date from the BED account, transferring funds into the ISA and buying back the stock post ex-dividend date. I am just not sure how the timing works and if it would be effective.
The problem I have is the time delay, by the time I have sold in the BED, transferred funds to my bank account and moved them into my ISA I am looking at 4 or 5 days and while this delay could work in my favor, my luck suggests it is more likly to work against me.
All things being equal I am transferring the stocks likly to cause the biggest tax liabilities first.
Has anyone done this or can offer any advice or pitfalls to watch out for.
I appreciate that its just advice and any adverse outcome is my responsibility, but it may give me things to consider that I hadn't thought of.
In essence what I'm trying to achieve is to transfer stocks held in my BED into my ISA as efficiently as possible. With some types of stock I am given to understand dividend capture is less efficient (utilities ?) so I will try and make use of the SP changes around the ex dividend date. Others I may benefit from dividend capture.
Thanks in advance for anyone who can find the time to reply.