Glossary · UK
What is In-Specie Transfer?
Moving an investment asset directly between accounts, such as from a pension to an ISA or between two pension providers, without selling it for cash first.
Full Definition
An in-specie transfer is the movement of an asset -- typically shares, funds or other investments -- directly from one account or ownership structure to another "as is", rather than selling the asset for cash, transferring the cash, and then repurchasing an equivalent holding in the new account. Because the underlying investment is not sold and repurchased, an in-specie transfer avoids being out of the market during the transfer window and can save on dealing costs, though it does not usually avoid Capital Gains Tax where the transfer counts as a disposal for tax purposes, such as moving shares from a general investment account into an ISA or SIPP wrapper, since HMRC treats this as a sale at market value even though no cash actually changes hands. In-specie transfers are common in three main contexts: moving pension benefits between providers (particularly for SIPPs holding commercial property or specific share portfolios that would be costly or impractical to liquidate), a "Bed and SIPP" or "Bed and ISA" transaction where an investor sells and instantly repurchases the same holding inside a tax-advantaged wrapper (this variant does involve a sale, but the "in-specie" label is loosely used for the overall strategy), and transferring assets as part of a divorce settlement or into a trust. Not every asset can be transferred in-specie -- the receiving scheme or platform must be willing and able to accept that specific holding, and some platforms only support in-specie transfers for a limited range of standard funds and listed shares, so investors should check acceptance in advance rather than assuming any investment can move without being sold.