shares isa

[lesat]

I heard you can put shares into an isa how does this work?

[antiguru]

An ISA is just a wrapper, so you need to find a company who will allow you to hold shares in an ISA (there are loads out there. You can buy a stocks and shares ISA where the company chooses which shares to put in (they hold them in a fund), or you can buy individual shares and hold them in an ISA wrapper or, if you already own shares you want to transfer into an ISA you can do something called a Bed and ISA.

Which do you want to know more about?

[lesat]

But what do the shares do when they in there? do they make intrest?

[dzug]

No they don't make interest.

They pay dividends. You either instruct the ISA company to reinvest the dividends or to pay them out to you.

They also (potentially) increase in value.

[WendyS]

You can include your shares in an ISA wrapping up to the annual �7,000 allowance. If you contact a firm of financial advisors like Hargreaves Lansdowne (www.h-l.co.uk) they will arrange for this to be done providing you have a certificate for your shares. If they are held in a nominee account (i.e. in bulk with everybody elses's shares as a result of a demutualisation for example,) it may be more complicated to arrange. Shares usually pay annual dividends, normally ddeclared at x pence per share held. If your shares are in an ISA wrapping this dividend can be reinvested and used to buy more shares, or the dividend paid out to you tax free.