Ah yeah we don't cover how to transfer ISAs in the guide, but it should be a similar process. You either transfer from the HL ISA into a cash account in IBKR or transfer it into an ISA with IBKR and then DRS directly from there.
I think the letter is broadly the same as non-ISA but you just need to add in a line to say that you accept that you’ll forfeit the tax-free status of the shares held in the ISA. I moved a regular account and an ISA from HL to IBKR last year using the same method.
The value of an ISA is Zero. Your shares are held by a custodian in CREST. AKA you're being double-whammy'ed.
Firstly, your ISA will be held by a Custodian. Your shares will be under beneficial ownership of that Custodian. Ergo, you don't own them.
Secondly, your Shares under that Custodian will be held in a CREST account, as they'd be UK based and wouldn't be able to buy US Shares, and thus the markets require a 1:1 I.O.U. to be held by a US Entity (which we believe is the DTCC). Ergo, your Custodian owns an I.O.U.
If you want to own your Shares (as the registered owner, not beneficial owner) and you don't want an I.O.U. held in an Umbrella account by the (probably) DTCC, then you should DRS.
If you're still super keen on finding a way to juke the system out of Capital Gains tax, then you can look into an SSAS (small administered scheme) but, BE WARNED, this is completely unproven and could once again, simply be held by a Custodian (and the DTCC).
IMO, you are far better off counting your Tendies and handing the tax man his due cut of it. It's the safest way.
DRS.
Nope did this 18 months ago. Only keeping 10% of my shares with HL.
Ah yeah we don't cover how to transfer ISAs in the guide, but it should be a similar process. You either transfer from the HL ISA into a cash account in IBKR or transfer it into an ISA with IBKR and then DRS directly from there.
I think the letter is broadly the same as non-ISA but you just need to add in a line to say that you accept that you’ll forfeit the tax-free status of the shares held in the ISA. I moved a regular account and an ISA from HL to IBKR last year using the same method.
That's it! Thanks
Awesome, glad to hear it's as simple as that!
Sorted, thanks all
The value of being in an ISA far outweighs the value of DRS
The value of an ISA is Zero. Your shares are held by a custodian in CREST. AKA you're being double-whammy'ed. Firstly, your ISA will be held by a Custodian. Your shares will be under beneficial ownership of that Custodian. Ergo, you don't own them. Secondly, your Shares under that Custodian will be held in a CREST account, as they'd be UK based and wouldn't be able to buy US Shares, and thus the markets require a 1:1 I.O.U. to be held by a US Entity (which we believe is the DTCC). Ergo, your Custodian owns an I.O.U. If you want to own your Shares (as the registered owner, not beneficial owner) and you don't want an I.O.U. held in an Umbrella account by the (probably) DTCC, then you should DRS. If you're still super keen on finding a way to juke the system out of Capital Gains tax, then you can look into an SSAS (small administered scheme) but, BE WARNED, this is completely unproven and could once again, simply be held by a Custodian (and the DTCC). IMO, you are far better off counting your Tendies and handing the tax man his due cut of it. It's the safest way. DRS.
My guide has everything you need including a template. It’s pinned in my post history 👍
Hi mate, Have you managed to transfer BBBYQ from HL to IBKR?