Bed and ISA Calculator UK 2026
Calculate the tax cost and long-term benefit of a Bed and ISA — selling shares in a general investment account and immediately rebuying them inside an ISA to shelter future gains.
Key Bed and ISA Facts 2026/27
- CGT annual exempt amount: £3,000
- CGT rate on shares — basic rate taxpayers: 18%
- CGT rate on shares — higher/additional rate taxpayers: 24%
- ISA annual subscription allowance: £20,000
- ISA growth and income: permanently tax-free
- 30-day rule: does not apply to ISA rebuys — same-day Bed & ISA is allowed
Bed & ISA: Move Shares Tax-Efficiently
Enter your investment details to see the CGT cost today and the long-term benefit of sheltering growth inside an ISA.
Bed and ISA Calculator
CGT rates 2026/27: basic rate 18%, higher/additional 24% on shares/funds. Not financial advice.
How Bed and ISA Works
A Bed and ISA involves two simultaneous transactions: you sell shares or funds in a general investment account (GIA) and immediately repurchase the same assets inside your stocks and shares ISA. The sale triggers a capital gain calculation, but all future growth and income is then sheltered from tax inside the ISA wrapper permanently.
The critical rule that makes this viable is that the 30-day anti-avoidance rule does not apply to purchases inside an ISA. Under normal CGT rules, selling and rebuying within 30 days resets the cost basis, negating the tax benefit. The ISA exemption to this rule means you can execute the Bed and ISA on the same day.
The maths is straightforward: pay a defined CGT cost today, then enjoy compound growth with no further tax drag. For most investors holding appreciating assets for a decade or more, the benefit substantially outweighs the upfront cost.
CGT Rates on Shares 2026/27
Basic rate taxpayers pay 18% CGT on shares and investment funds. Higher and additional rate taxpayers pay 24%. The annual CGT exempt amount is £3,000. If your total unrealised gain is within this allowance, you can Bed and ISA with no CGT cost at all — a significant opportunity many investors overlook.
Note that CGT rates on residential property (28%/24%) are different from shares. The rates above apply specifically to shares, unit trusts, OEICs, and investment trusts.
Frequently Asked Questions
1. What is a Bed and ISA UK?
A Bed and ISA involves selling investments held in a general investment account (GIA) and immediately repurchasing them inside an ISA. This crystallises any capital gain at the point of sale, but all future growth and income inside the ISA is sheltered from UK tax permanently. The 30-day anti-avoidance rule does not apply to ISA rebuys, making same-day execution fully legitimate.
2. How much CGT do I pay on a Bed and ISA?
You pay Capital Gains Tax on any gain above the annual exempt amount of £3,000 (2026/27). Basic rate taxpayers pay 18% on shares, higher and additional rate taxpayers pay 24%. The gain is sale proceeds minus your original cost basis. If your total gains in the year are within £3,000, you can Bed and ISA with zero CGT.
3. Is Bed and ISA worth it?
For most investors holding appreciating assets long-term, yes. The compound effect of tax-free growth over 10–30 years typically outweighs the upfront CGT cost, especially for higher rate taxpayers who would otherwise pay 24% CGT and dividend tax every year outside an ISA.
4. When should I do a Bed and ISA?
The best time is when your unrealised gain is within or near the £3,000 annual exemption, meaning zero or minimal CGT. You should also consider timing it early in the tax year to maximise your £20,000 ISA allowance. Avoid years when you have already used your CGT exemption on other disposals.
5. Bed and ISA vs Bed and SIPP — which is better?
A Bed and SIPP locks money until at least age 57 but attracts income tax relief (20–45%) on the contribution. A Bed and ISA is fully flexible with no upfront relief. For long-term retirement saving, Bed and SIPP often wins on tax efficiency. For medium-term goals or if you need access before retirement, Bed and ISA is usually preferable.