UK Bed-and-ISA Strategy (2026/27)
Bed-and-ISA 2026/27: sell shares in a general account using the CGT allowance, rebuy inside an ISA. Why the 30-day rule does not block it, limits and pitfalls.
Coming change: cash ISA limit from April 2027
The overall ISA allowance stays at £20,000, but from 6 April 2027 the annual cash ISA subscription limit falls to £12,000 for savers under 65 (per the HMRC policy paper). Bed-and-ISA uses a stocks and shares ISA, so the cash limit does not cap it.
Related guides
- UK CGT 30-Day Rule 2026/27 - Section 106A mechanics.
- UK Tax Year-End Checklist 2026/27 - bed-and-ISA in year-end context.
- UK CGT Rules Guide - 18/24% rates + AEA.
- UK S&S ISA Provider Comparison 2026/27 - bed-and-ISA-friendly platforms.
- UK Form 17 Spousal Property 2026/27 - parallel spousal income optimisation.
Frequently asked questions
What is bed-and-ISA?
Two linked trades: you sell shares or funds held in a taxable general investment account (GIA), which is a disposal for Capital Gains Tax, and buy the same or similar investments back inside a stocks and shares ISA using cash, which uses part of your £20,000 annual ISA allowance. Gains up to the £3,000 annual exempt amount are tax-free; future income and gains inside the ISA are not taxed. It has to be done as a sale and repurchase because GOV.UK says you cannot transfer non-ISA shares you already own into an ISA unless they come from an employee share scheme.
Why is the 30-day rule not a problem for bed-and-ISA?
TCGA 1992 s.106A(5) matches a disposal of shares with shares of the same class the same person acquires in the following 30 days, which is what stopped the old "bed-and-breakfast" trick. Bed-and-ISA is still the same person buying, but regulation 34(2) of the Individual Savings Account Regulations 1998 makes s.106A apply separately to securities held as ISA investments. The ISA purchase is therefore not matched with the GIA sale, and the gain or loss on the sale stands. The 30-day rule still applies if you buy the same shares back outside an ISA within 30 days.
How do I execute it?
Many investment platforms offer a combined bed-and-ISA instruction that sells in your GIA and buys in your ISA, so you are out of the market only briefly. Check the platform charges dealing fees on both legs. Keep the contract notes: the sale is a disposal you may have to report. If you are registered for Self Assessment, GOV.UK says you must report gains in your return if they are over the annual exempt amount, or if the total amount you sold assets for was more than £50,000 (2023/24 onwards).
How much can I move per year?
Two separate limits. (a) CGT annual exempt amount £3,000: gains above it are taxed at 18% within the basic-rate band and 24% above it. (b) ISA allowance £20,000: the cash you subscribe to rebuy counts against it. Example: a £40,000 holding with a £20,000 unrealised gain, so half of any sale is gain (ignoring price movements). Selling £6,000 a year keeps the gain within the exempt amount and moves the holding in about 7 years. Selling £20,000 to fill the ISA allowance realises a £10,000 gain, of which £7,000 is taxable. Whether that tax is worth paying to shelter the holding sooner is a judgement for your circumstances.
What about bed-and-spouse vs bed-and-ISA?
Bed-and-ISA moves your own investments into your ISA. Bed-and-spouse means transferring investments to your spouse or civil partner, which is treated as at no gain and no loss while you are married or civil partners and living together (TCGA 1992 s.58), so they can sell using their own £3,000 exempt amount and rebuy in their own ISA with their own £20,000 allowance. Used together, a couple can shelter up to twice the ISA allowance a year. Bed-and-spouse on its own does not shelter anything from future tax; it only spreads the current gain across two exempt amounts.
What is the tax saving over time?
It depends on yield, growth and your tax band. Illustration: £100,000 of shares yielding 3% outside an ISA pays £3,000 of dividends a year. After the £500 dividend allowance, a higher-rate taxpayer pays 35.75% on £2,500, which is £894 a year, and CGT on any eventual sale. Inside an ISA neither is due. The figures are an illustration, not a forecast.
Common pitfalls and mistakes?
(a) Other trades in the same shares: buying the same shares back outside the ISA within 30 days brings the 30-day matching rule back into play. (b) Price movement between the sale and the repurchase. (c) Dealing charges on both legs can make small transfers uneconomic. (d) Currency: foreign-currency holdings may involve conversion costs. (e) Year-end timing: allow time for both legs to settle before 5 April if you want to use the current year's allowances.
Can I do this for crypto?
Not with cryptoassets held directly - they are not qualifying ISA investments. GOV.UK says cryptoasset exchange traded notes cannot be held in a stocks and shares ISA unless they were held there before 6 April 2026, and must instead be held in an innovative finance ISA. Transfers of cryptoassets between spouses or civil partners who live together are at no gain and no loss under TCGA 1992 s.58, so each can use their own annual exempt amount on a sale.