A Bed & ISA transaction is where a parcel of shares in the same Company, held in an individual’s own name and outside of an ISA, are sold and then simultaneously bought back within an ISA.

It is not possible under HM Revenue and Custom (HMRC) rules to put shares directly into an ISA. This means that to put your shares into an ISA they must be first sold, the cash transferred into the ISA and then the shares repurchased. The sale and repurchase are made at the same time to limit potential price movement.