Shares ISA Trading

jimc47

On the MSE ISA Guide it gives an example of a shares ISA:

"Situation: Mr Rich Devil invests £11,520 in a shares ISA at the beginning of the tax year. Options: He may sell the whole investment, or part of it, at any time without losing the tax benefits. But no more may be bought inside that year's ISA wrapper."


I understand that no more money can be put into the ISA in that year, but my question - just to clarify things - if he sells the investment within the ISA, ie does not take the money (the proceeds of sale) from the ISA, he can surely re-invest in a different share or shares. No more may be bought if the money has been taken out, but selling and buying within the ISA is allowed isn't it?

Lokolo

Yes you can do this.

So if he has £10k. Buys £10k shares. Shared go up to £20k. Sells the shares but the cash stays within the ISA. He can then buy £20k worth of shares.

If that is an exact extract of the MSE article then it very poorly written.

westy22

Yes, you can sell and rebuy as much as you want within an ISA so long as the money stays within the wrapper. You can also reinvest any dividends paid within the wrapper.

puk999

jimc47 wrote: »

if he sells the investment within the ISA, ie does not take the money (the proceeds of sale) from the ISA, he can surely re-invest in a different share or shares. No more may be bought if the money has been taken out, but selling and buying within the ISA is allowed isn't it?

That's correct. As long as the money stays within the wrapper it can go from stock to stock indefinitely.

Vortigern

OP, your understanding is correct, you can trade shares within an ISA.

... And I object to the characterisation of S&S ISA investors as "Rich Devils"

jimc47

Thanks everyone, I agree that the extract seems unclear, hence my question... it's what I've been doing and suddenly wondered if I was going to be in trouble!