share ISA question

Anabiosis

Hi,

I'm thinking of opening a share ISA and want to know whether dividends can be paid automatically into the ISA even if the annual limit has been reached ?

Say for instance I invest the full annual amount in a share ISA and buy for sake of argument shares in BA. When the dividend is paid I usually ask for this to be automatically reinvested in shares. So my question is : Am I allowed to reinvest the dividend even though I've reached my annual limit ?

I guess my question could be summed up as : Are dividends classed as growth or are they treated as cash input into the ISA ?

Thanks in advance.

cheerfulcat

Neither - they are treated as income generated within the ISA and yes, you may re-invest them.

Anabiosis

Cheers. That's really handy to know.