Bed and ISA video guide

We know that a crucial part of financial planning is to maximise tax allowances for clients, including the all-important annual ISA and Junior ISA allowances. This can either be funded by new money from your client or by using existing assets held in a 7IM GIA. We therefore have a bed & ISA tool to enable you to easily use these GIA assets to fund an ISA.

This tool will allow you to:

• Sell assets in a GIA
• Subscribe the proceeds to an ISA or Junior ISA; and
• Invest the ISA subscription into your choice of investments

All this within a single online instruction with virtually no out of market exposure and no charge.

To access this tool, go to Transactions > Bed & ISA > Instruction

From here you can choose the client, choose the GIA to sell the assets from, and choose the ISA to subscribe into and invest the assets in.

Please note that if you want to sell assets from multiple GIA sub accounts, you will need to submit a separate bed & ISA instruction for each sub account.

For the sales in the GIA you will be able to:

• Sell proportionally across all the assets in the portfolio with or without cash
• Sell specific monetary amounts from specific funds in the GIA
• Sell percentages of each fund
• Use cash that is already in the GIA to either add to the fund sales or instead of doing any sales

Please note that all sale trades have to be monetary amounts so you cannot sell a certain number of units of a holding (for example liquidating an entire holding). This is because the sale proceeds will be unknown at the time you submit the bed & ISA instruction and therefore we won’t know how much the ISA subscription or ISA buys should be for. If you want to do this kind of sale trade, please do it separately on our platform using our dealing screen and then you can use this tool once those sales have settled.

For the buys in the ISA you will be able to:

• Invest in the DFM model that the ISA is already linked to
• Invest into your own advisory model portfolio
• Invest in your own choice of funds
• Replicate the investments sold in the GIA by clicking the Copy sales button

The remaining ISA allowance figures will include any withdrawals do you can make the most of our flexi ISA. These figures are updated weekly so might not reflect any subscriptions or withdrawals done very recently. You can check all the clients’ allowances by downloading the Unused ISA allowance report from our platform.

If your client hasn’t subscribed to a 7IM ISA in the current or previous tax years, you will also be able to use this tool to confirm that your client wishes to restart their ISA subscription with 7IM. You can do this by ticking the box at the bottom of the screen and confirming the ISA declaration. The bed & ISA instruction can then proceed and we will confirm the ISA subscription restart to your client in writing.

Once you have submitted the bed & ISA instruction, it will be visible on the History screen which can also be exported to Excel.

Where a bed & ISA instruction is submitted before 2.30pm on a working day, we will normally process this by the end of the day.

Both the GIA sales and the ISA buys will get done simultaneously at the next available valuation point for each asset. This means that there will be no out of market time between like for like GIA sales and ISA buys.

Bed & ISA instructions submitted after 2.30pm will be processed the following working day.

Most transactions will be visible in the client’s transaction history on our platform a day or two after the bed & ISA instruction has been submitted. Trades in ISA sub accounts, however, will take a few days longer to appear (once the GIA sales have settled).