14.5 C
New York

The best way to move investments to a different platform, or gift them to family and friends


The investment world has modified lots over the past few years. Lots more persons are selecting to place their money into investment Isas or individual stocks and shares, and with a proliferation of no-commission apps it is simpler than ever.

And with experience, investors have gotten more sophisticated. You will have turn into well-versed in investment, and now think you could possibly get a greater deal by moving your pot elsewhere.

Probably the greatest things to do is shop around and see what works best for the quantity you may put away monthly. 

Have a have a look at our top investment platforms guide, or check the fees table at the underside of this text, to see should you could get a greater deal elsewhere. 

It’s a great idea to buy around for one of the best deals relating to investment platforms and it’s fairly straightforward to transfer your assets

We have a look at how you may transfer your stocks and share Isa and individual stocks to a different platform, in addition to gifting shares and what to do whenever you’re left shares as a part of an inheritance.

Transferring between investment platforms

Those that began investing a protracted time ago and are paying hefty fees to investment managers could also be tempted to maneuver over to among the no-commission apps. 

They might have realised that they’re paying an excessive amount of, or that what’s on offer is not wide enough for what they need to take a position in.

However the very last thing you wish to do is transfer your investments only to seek out you are going to be charged much more, so do take a look at the costs before making the switch. 

Most brokers make it relatively easy to transfer online, and use the Automated Customer Account Transfer Service (ACATS) to maneuver investments securely.

You will want to place in a transfer request together with your existing provider, fill out the transfer form together with your latest broker, and from there your broker will manage the transfer.

The old broker may charge a transfer fee although often online brokers offer to pay any fees but be certain that you check any fees, charges or penalties before you progress all your investments over.

Simple: Investment apps have made it easier and cheaper to buy stocks and shares - and transferring from a traditional broker shouldn't be difficult

Easy: Investment apps have made it easier and cheaper to purchase stocks and shares – and transferring from a standard broker should not be difficult

The method might differ barely if you have to transfer from a broker based outside of the UK.

It is best to also check to see should you own any of the brokers’ proprietary investments, like their very own mutual funds, that they will not let you transfer to a latest broker.

There are two ways to transfer your investments between brokers, either a stock transfer (in specie) or through money.

A stock transfer does what it says on the tin: you transfer your assets meaning you may keep hold of your investments. This takes as much as 4 weeks.

Should you decide to sell your holdings and transfer the cash as money, it’s more straightforward – but you may miss out on any returns or find yourself selling at a time that won’t favourable.

It’s also possible to transfer your stocks and shares Isa, which crucially doesn’t count as latest contributions for the present tax yr.

As with transferring individual stocks, you may carry over the investments or you may sell the investments held within the Isa and pass on the proceeds to the brand new provider.

The Isa status of the money will remain in place through this process, and the brand new provider will reinvest the cash consistent with your instructions.

If you wish to keep a part of your portfolio together with your current broker, you may make a ‘partial transfer’, but this does mean you’ll have to pay commission and/or dealing account fees to 2 brokers.

Transferring shares as a present

You would possibly have considered putting money away in your kids, like our personal finance editor Lee Boyce has done for his daughter with a stocks and shares Isa.

Nevertheless you may also consider gifting shares you already own as an alternative, which is fairly straightforward.

Everyone has an annual gift allowance of as much as £30,000, allowing you to offer away your investments without it being added to the worth of your estate for tax purposes.

Gifting: Everyone has an annual gift allowance of £30,000, which can be used to transfer investments to family members for example

Gifting: Everyone has an annual gift allowance of £30,000, which will be used to transfer investments to members of the family for instance 

You may transfer shares to members of the family or a spouse should you’re members of the identical investment platform.

You would also consider something called ‘Bed and Spouse’ which involves selling the shares to someone in your household and immediately having them rebought in your partner’s Isa or Sipp. Should you do that, you will not be responsible for any capital gains tax (CGT).

You shall be liable to pay CGT should you’re gifting shares to someone who is not in your household – but you do have an annual allowance of £12,000 where you will not need to pay tax.

Transferring shares after death

Should you inherit a portfolio of shares and funds, there are numerous steps you have to take to take advantage of your latest assets. Should you don’t, you could miss out on a few of your inheritance.

If someone owned shares on the time of their death then the worth of those shares shall be included of their estate.

The executor of the desire has to undergo the probate process before transferring any assets, which can mean figuring out how much inheritance tax to pay.

All corporations keep a share register of shareholders’ names and addresses and these are sorted by separate corporations. 

The three predominant UK share registrars are Equiniti, Link and Computershare and so they cover most UK corporations.

Equiniti says you may notify it of the death before you have got a Grant of Representation. That is the document that proves legal authority of the person entrusted to cope with the person’s estate.

Notifying the registrar of the death promptly stops any share sales and dividends from being issued.

In the event that they are told of a shareholder’s death after the date that their dividend is confirmed, they can’t stop the payment from being made and a cheque or share certificate shall be sent out.

If the shares are jointly held with another person, the registrar just needs the death certificate – though they do not accept copies – and a accomplished transfer of joint holding form.

Meaning the holding shall be updated to only be within the name of 1 holder.

The subsequent step is showing the registrar a Grant of Representation in order that they will transfer or sell shares.

Equiniti offers a Small Estate service in cases where the worth of shares on the date of death was lower than £20,000, and it is likely to be too expensive to get a Grant.

Whether or not Capital Gains Tax shall be payable on the shares is determined by whether or not they are sold during probate, and in that case, whether or not they have increased in value for the reason that date of death, in keeping with Co-op Legal Services.

If shares are transferred on to beneficiaries then no tax shall be payable, but when the beneficiary then decides to sell the shares in a while, they could turn into responsible for CGT.

Compare one of the best DIY investing platforms and stocks & shares Isa

Investing online is easy, low cost and will be done out of your computer, tablet or phone at a time and place that suits you.

In terms of selecting a DIY investing platform, stocks & shares Isa or a general investing account, the range of options might sound overwhelming. 

Every provider has a rather different offering, charging kind of for trading or holding shares and giving access to a distinct range of stocks, funds and investment trusts. 

When weighing up the suitable one for you, it is vital to to have a look at the service that it offers, together with administration charges and dealing fees, plus another extra costs.

To provide help to compare investment accounts, we have crunched the facts and pulled together a comprehensive guide to selecting one of the best and most cost-effective investing account for you. 

We highlight the predominant players within the table below but would advise doing all your own research and considering the points in our full guide linked here.

>> That is Money’s full guide to one of the best investing platforms and Isas 

Platforms featured below are independently chosen by That is Money’s specialist journalists. Should you open an account using links which have an asterisk, That is Money will earn an affiliate commission. We don’t allow this to affect our editorial independence. 


Admin chargeCharges notesFund dealingStandard share, trust, ETF dealingRegular investingDividend reinvestment
AJ Bell YouInvest*0.25% Max £3.50 monthly for shares, trusts, ETFs. £1.50£9.95£1.50£1.50 per deal More details
Bestinvest*0.40% Account fee cut to 0.2% for ready made investmentsFree£4.95n/an/aMore details
Charles Stanley Direct0.35% No platform fee on shares if a trade in that month and annual max of £240Free£11.50n/an/aMore details
Fidelity*0.35% on funds£45 fee as much as £7,500. Max £45 per yr for shares,  trusts,  ETFsFree£10Free funds £1.50 shares, trusts ETFs£1.50More details
Hargreaves Lansdown*0.45%Capped at £45 for shares, trusts, ETFsFree£11.95£1.501% (£1 min, £10 max)More details
Interactive Investor* £119.88 as £9.99 monthly£7.99 monthly back in trading credit£7.99£7.99Free£0.99More details
iWeb£100 one-off£5£5n/a2%, max £5More details
Freetrade*Free for traditional account £3 month for Isa Freetrade Plus with more investments is £9.99/month inc. Isa feeNo funds Free n/a n/a More details 
Vanguard 0.15%  
Only Vanguard funds
Free Free only Vanguard ETFs Free n/a More details 
(Source: ThisisMoney.co.uk June 2022. Admin charges quoted annually, could also be monthly or quarterly)


Some links in this text could also be affiliate links. Should you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to make use of. We don’t write articles to advertise products. We don’t allow any business relationship to affect our editorial independence.

Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles


Recent articles