How to transfer Save As You Earn (SAYE) shares into an ISA
Mark Tovey is a finance journalist with bylines in The Guardian, The Motley Fool, and more. He digs into data and FOI-based investigations, and makes finance easier to understand.
Last updated 4th September 2025
9 min read
- Open a Stocks & Shares ISA with a broker that accepts SAYE transfers (e.g. Hargreaves Lansdown, Charles Stanley, AJ Bell, Interactive Investor, or Dodl).
- Complete the broker’s Employee Share Scheme (ESS) form and any registrar specific transfer forms.
- Gather proof the shares came from an HMRC approved SAYE, including the date you exercised the option.
- Post the forms (and original certificates if required) to the broker. Some registrars may also ask for a cheque to cover fees.
- Wait for the shares to land in your Fund & Share Account (if using HL) or equivalent holding account.
- Submit the final ISA transfer request to move the shares directly into your ISA.
- Ensure all this happens within 90 days of exercising your SAYE option to keep the tax perks.
If you have just exercised your Save As You Earn (SAYE) option, congratulations: you probably bagged your company's shares at a discount.
Now you have a ticking clock. Unless you act within 90 days, those shares will sit outside a tax wrapper and HMRC will happily take capital gains tax (CGT) on future growth and dividend tax on income.
But there's a solution: you can move the shares into an Individual Savings Account (ISA). Inside an ISA, gains and dividends are free from UK tax, and selling the shares later doesn't trigger CGT.
Of course, there's a catch. The value of what you move will eat into your annual ISA allowance (£20,000 for 2025/26), so keep that in mind.
Financial Interest provides guidance, not advice. If you’re unsure about anything, speak with a qualified adviser. When investing, your capital is always at risk. Past performance does not guarantee future results.
But before we begin...
What is a SAYE scheme?
A government-backed plan that lets you save monthly (£5–£500) for three or five years, then buy your employer's shares at a discount. The interest and any bonus at the end of the scheme is tax-free, and you don't have to pay Income Tax or National Insurance on the difference between what you pay for the shares and what they're worth (effectively, the discount you receive). But when you sell those shares, you could be hit by CGT – which brings us onto our next point...
Why bother with an ISA transfer?
- Tax-free growth: no CGT on gains.
- Tax-free dividends: no dividend tax to pay.
- Flexibility: hold or sell your shares whenever you like.
Hargreaves Lansdown has a reputation for being a bit of a dinosaur. It still stings you for £11.95 every time you trade a share, as if we were all stuck in 2005 and cheap app-based brokers didn't exist.
For SAYE transfers, though, this is one corner of the market where HL earns its keep: it is one of the few that handles 'in-specie' transfers, meaning your shares move straight across without being sold first.
The process has two parts: first you park the shares in an HL Fund & Share Account, then you shift them into an HL ISA.
If your SAYE shares live with the scheme registrar (Equiniti, Link Group, Computershare, or similar), HL takes care of the legwork once you:
- Download (here) and fill in the 'Transfer into the Fund & Share Account' form, plus the specific form for your company's shares (registrars like Equiniti, Link and Computershare each have their own).
- Post everything (and a cheque if the registrar charges fees) to FREEPOST: Hargreaves Lansdown. Yes, this is as archaic as it sounds; if you have never owned a chequebook, you may need to ask your bank to issue one or request a single bank cheque to cover the fee.
HL will then chase the registrar and update you when the shares land in your account.
HL can still process the transfer, but you must send the original certificates and may face a 'dematerialisation fee' from the registrar (which sounds less like an admin charge and more like something a Martian would announce before firing up its heat ray).
Once the shares appear in your Fund & Share Account, you're ready for the next step.
You can only move shares directly into an HL Stocks & Shares ISA if they came from an HMRC-approved SAYE or SIP. HL won't just take your word for it, so you will have to:
- Complete HL's Employee Share Scheme (ESS) form. This confirms the shares came from a qualifying plan. Download the form here.
- Provide evidence showing your name, the share name, how many you got, and the date you exercised your option (or withdrew the shares for a SIP). HMRC insists the transfer happens within 90 days, so the dates must check out.
- Send the form to HL (yes, by snail mail again.)
HL doesn't charge for the transfer or to open the ISA, though annual ISA fees apply (0.45% capped at £45 for a stocks & shares ISA, 0.25% capped at £45 for a Lifetime ISA).
Complete the process within the 90-day window and you sidestep capital gains tax and any costs that would come with selling and buying the shares.
Brokers that accept SAYE transfers
You might have heard of 'Bed and ISA'.
No, it's not a quirky bed and breakfast where they serve stocks and shares on toast while a man in a bowler hat explains capital gains.
So, what is Bed and ISA?
It's the workaround most brokers use when they don't allow SAYE or Share Incentive Plan (SIP) shares to move directly into an ISA (e.g., Freetrade, Trading 212).
Here's how it works:
- You sell the shares in your standard account.
- You put the cash into your ISA.
- You buy the shares back in your ISA. Voila!
The only problem with this strategy is that it might land you with a CGT bill if your gains are above the allowance (which is only £3,000 for the 2025/26 tax year).
If that's a risk in your case, you might want to consider the below brokers that skip that faff and let you transfer the shares directly into your Stocks & Shares ISA:
| Broker | Do they accept SAYE/SIP transfers? | What you need to know |
|---|---|---|
| Hargreaves Lansdown (HL) | Yes. HL is one of the few that handles these transfers directly; no need to sell the shares first. | You’ll need to fill in HL’s Transfer into the Fund & Share Account form and the specific form for your company’s shares. To move them into the ISA, there’s also an Employee Share Scheme (ESS) form and proof the shares came from SAYE/SIP, including the date you exercised your option. There’s no HL fee for the transfer, but the usual annual ISA charge applies. |
| Charles Stanley | Yes. They allow SAYE/SIP shares to move straight into their ISA without the usual Bed & ISA workaround. | No fee if the shares are already electronic, but £50 if they’re in paper form. |
| Barclays Smart Investor | Sort of. They’ll only take SAYE shares if they’re electronic and with Global Stocks and Rewards (GSAR). | They won’t take paper certificates directly into an ISA; you’d need to add them to an investment account, sell, and then Bed & ISA the cash. |
| interactive investor (ii) | Yes. ii accepts SAYE/SIP shares into its ISA without needing to sell first. | The transfer must be initiated by the employer or registrar (not you). ii accepts physical certificates, provided you post them with a Crest Transfer Form. They don't charge for the transfer. |
| AJ Bell / Dodl | Yes. Both AJ Bell and Dodl allow these transfers, as long as the shares fit their investment list. | You can send the transfer request along with the Letter of Appropriation by email or post. Dodl has a slimmer investment list than AJ Bell, so check your shares are supported before starting. |
Things to know before transferring
- The 90-day clock is ticking. HMRC gives you just 90 days from when you exercise your SAYE option or when your SIP shares slip out of the plan to get them into an ISA. Miss that window and your options shrink to selling and rebuying through a Bed and ISA or leaving them outside the tax shelter. Imagine a tortoise heading for the airport, clutching its tiny passport; you've got plenty of time to intervene, but once it's buckled into its seat, enjoying complimentary in-flight nibbles, you're too late.
- Your ISA allowance isn't bottomless. The value of your SAYE shares eats into your annual £20,000 ISA limit. If your shares push past that allowance, only the portion up to £20,000 can squeeze into your ISA. The remainder is stuck outside, sadly waving from your ordinary investment account.
- You'll need proof your shares qualify. Brokers don't trust easily (probably wise). They'll insist you provide evidence that your shares came from an HMRC-approved SAYE or SIP scheme, including the exact date you exercised your option or withdrew your shares. Usually, your employer or scheme administrator gives you this document, typically known as a Letter of Appropriation.
- Keep an eye on fees (especially the weird ones). Most brokers don't charge to move SAYE shares into an ISA, but if your shares still live as paper certificates, prepare to face a 'dematerialisation fee' (a charge for digitising paper shares). HL processes these transfers but the registrar's fee still applies, while Charles Stanley openly charges £50 for the same conversion.
- Check your broker actually takes your shares. Not every broker accepts every share. Barclays Smart Investor only takes SAYE shares held electronically through GSAR (Global Stocks and Rewards), while Dodl only accepts shares within its investment range. Check carefully before sending off your paperwork.
- Get advice if you're in doubt. Shuffling SAYE or SIP shares into an ISA can save you tax, but what's great for someone else might not suit you. If you're unsure, find yourself an independent financial advisor (preferably one who doesn't explain tax rules with sock puppets).
We are not financial advisers, and nothing we say is advice. Unsure about anything? Speak with an expert.
Yes. The same 90-day transfer rule applies when removing shares from a SIP, but the process may vary depending on your provider.
What happens if I've already used up my ISA allowance for this year?
You've got 90 days from the date you exercise the option to transfer the shares directly into your ISA. If that 90-day window straddles a new tax year, you can use the fresh £20,000 allowance and still keep the tax perks. But if the window closes before the new tax year begins, you'll have to park the shares in a general investment account and later use a Bed and ISA, which means selling, rebuying, and losing the special treatment. Better luck next time.
Bottom line
Transferring your SAYE shares into an ISA might feel like jumping through hoops, especially with brokers who still believe cheques and snail mail are cutting-edge technology.
But act within 90 days and you dodge HMRC's grabby hands, making the paperwork gymnastics well worth it.
Miss the window, and you're stuck playing Bed and ISA, which sounds cosy but can cost you tax.
Financial Interest provides guidance, not advice. If you’re unsure about anything, speak with a qualified adviser. When investing, your capital is always at risk. Past performance does not guarantee future results.
