Bed&ISA - shares in the red

[JamMakingWannaBe]

What would be the benefits / downsides of moving shares that are currently in the red?

Obviously I'd hope for them to rebound and for future gains to be protected in an ISA wrapper but is it worth doing?

I'm just aiming to tidy up my share dealing account.

Are the shares in a GIA at the moment?
So you have any gains to offset the losses this tax year or so you intend to carry the losses forward?

Last year I had a monthly investment into my ISA into company "Mnet". This is in profit.

Due to both an unexpected work bonus and inheritance I maxed out my ISA for 2022-23 diversifying my portfolio with other investments.

I've continued to make monthly investments into Mnet in my trading account but these currently have a loss.

For 2023-24 I'd like to move them into my ISA, to "tidy up"
and because I believe Mnet is due a re-rate this year and I'd like an ISA wrapper on the gains. I intend to hold for 5+ years.

I'm not intending to offset gains against losses as the values are under CGT levels.

None of the Google Bed&ISA advice specifically relates to moving shares currently trading at a loss and I was wondering if I was missing something fundamental in planning this.

I am waiting with interest to read other comments on this.
If you crystallise your loss now and move the investments into an isa you can carry the loss forward to set against possible future capital gains.
Once held in an isa any gains will be tax free.
The main reason to move an investment in to an isa would be to avoid any complicated dividend calculations investments into a tax free wrapper.
Unbeknown to me accumulation funds DO a have a dividend element and therefore are better held in an isa.

Thank you.

"Mnet" is not yet paying divis but that's an interesting point as I do have other divi paying shares in my Trading Account (albeit divi cancelled due to COVID trading conditions etc) I really ought to move into my ISA.

I've perhaps not managed my investments as well as I should and they definitely need a good tidy up.

Paperwork for standard dividends is reasonably straightforward but accumulation investments actually include ( hidden) dividends and the calculations and paperwork for tax returns are more complicated .
I intend to move mine into my isa ,such is my hate of additional tax forms.
I would love someone to come along and say I am wrong.

What's the stamp duty position? Would you need to sell the shares & rebuy into the ISA wrapper? If so you may be liable for SDRT.

Yes, I would have to pay Stamp Duty to repurchase my shares, and a one off fixed Trading Fee.

I can swallow a 0.5% charge now if my investments grows free of future tax / divis are tax free.

I'm reading the CGT level is reducing to £6k and then to £3k so I'm keen to try and future proof my ISA portfolio in 2023-24 / sell off small holdings in my Trading Account before April.

By selling and buying back into the same company in an isa, you will end up with a similar number of shares. They will just be in a tax efficient wrapper. You won't really have lost or gained anything until you cash them in at the end for good.

If you have remaining ISA allowance then sounds sensible to go ahead. All you’re doing is selling and paying any CGT (nil if they’ve made a loss) and the re-buying the shares in your ISA. If you think the investment will grow then having them inside a tax wrapper is sensible

Thanks all. You've consolidated my thinking.