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A strategy to sell investments and move them into an ISA to shelter future gains from tax.
Bed and ISA is a strategy where you sell investments held in a taxable General Investment Account (GIA) and use the proceeds to subscribe to your Stocks and Shares ISA allowance for the year. This shelters future dividends and capital gains from tax within the ISA wrapper. You need to be mindful of the £3,000 CGT annual exempt amount — if the gain from selling exceeds this, you may trigger a CGT liability.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.