ISAs and selling shares

odtaa

If I have a mxi ISA and put my money into a FTSE Tracker & decided that because of the stock market crash to pull out - would the money from the shares be held in the ISA until I wanted to reivest or would I have to pull the funds out of the ISA's protection?

Any response greatly received.

:cool: :cool:

dunstonh

What stockmarket crash is that? We have a correction that is not uncommon for May-Oct. However, there is no crash at this time.

Obviously, you have invested in a medium/high risk fund (risk 7 out of 10 on a crude 1-10 scale). Maybe you should consider moving down the risk scale and look at lower risk equity funds or even non-stockmarket funds rather than pull out of the ISA altogether.

If you disinvest totally, you are taking them money out of the ISA and any re-investment uses your ISA allowance. If you switch to alternative funds more suited to your risk profile (and it does appear that you have invested above your risk profile), then you do not use your ISA allowance as its an internal switch.

You really need to look at your risk profile more closely and also not stick all your money in one area.

cheerfulcat

If it is a self-select ISA the cash can be held in the cash account. The interest will be taxed, though.

isasmurf

The cash can remain in the Stocks & Shares component of your Maxi ISA as long as it is there with the intention of re-investing it at a later date. However, any interest earned while it is in cash will have a 20% charge deducted.

dunstonh

Is it self select ISA or a funds ISA?

Debt_Free_Chick

odtaa wrote:

If I have a mxi ISA and put my money into a FTSE Tracker & decided that because of the stock market crash to pull

Do you think you might be being just a little hasty?

The fall in the FTSE-100 this past week has simply returned the index to where it was about three months ago. That value is still higher than it was last July.

When you chose this fund, what were your objectives?

Debt_Free_Chick

Also, depending on the ISA you have, you may be able to switch out of the FTSE-100 and straight into a different fund. They are likely to be some buying/selling costs, but this would avoid having to hold the money in cash, which you might not be able to do.

odtaa

Thanks the comments have been helpful. I've not actually invested yet and I reckon I will hold fire until the markets stabalise.