Hi all,
Just a quick question - If I were to invest my full 20k allowance into my stocks & shares ISA, spend the whole amount on shares right away and then find that the value of my shares has increased such that it would be worthwhile selling them, what happens when my account is then holding more than my 20k limit?
Eg. I invest my max 20k on 6th April, buy 20k of shares in the middle of April, then in December I see that they are now worth 25k, so decide to sell. As of December, I now have 25k cash in my S&S ISA account for this tax year, is the extra 5k classed as profit? Can I purchase new shares with the whole 25k, or, as it will be over the 20k limit, will I have to withdraw the extra 5k to bring it back down to the limit?
Many thanks in advance,
Mel
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Selling Shares Within An ISA Help Please?
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- Lemon Quarter
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Re: Selling Shares Within An ISA Help Please?
You don't need to worry, once it's in the ISA it can go up, down, sideways or whatever and it doesn't matter, it's all tax free and you can sell, reinvest, withdraw or transfer without limit.
The limits only apply to new money going into the ISA.
Scott.
The limits only apply to new money going into the ISA.
Scott.
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- Lemon Half
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Re: Selling Shares Within An ISA Help Please?
Melanie wrote:what happens when my account is then holding more than my 20k limit?
Absolutely nothing. ISAs are policed solely on the amount you contribute every year rather than their value. It also means that if you buy stocks or funds where the annual reporting might be complicated, foreign dividends for example, they should be the ones in the ISA if you need to make a choice.
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