Selling / buying within ISA

QuietlyCautious

This is probably a basic question so apologies in advance but I'm just trying to clarify something in my head. I understand about the 30 day rule when selling buying shares outside of an ISA in regards to Capital Gains but a bit hazy if it is relevant within the ISA.
If I sell all my shares in Company A then I understand that the money cannot sit there indefinitely in the ISA without being re-invested. So I then buy shares in Company B with the money. Less than 30 days later the share price of Company A drops and looks to be worth re-investing. Can I then do this without getting penalised? If so can I do it by selling the shares that bought in Company B or do I need to use more of my yearly ISA allowance?

Like I said this may be very basic but seems too simple to me
Thanks in advance for any clarification on this

le_loup

It is basic - but then again it wouldn't have been so for me 20 years ago!
You can buy, sell, hold cash as often as you like with no penalties in an ISA. That's why they are so useful.

jimjames

Once the money is inside the ISA you can buy & sell any eligible shares or funds using that money and whatever growth you have generated with it. There is no restriction on buying shares you have previously sold or not.

masonic

QuietlyCautious wrote: »

If I sell all my shares in Company A then I understand that the money cannot sit there indefinitely in the ISA without being re-invested.

This used to be the case when S&S ISAs were restricted from being used for cash-like investments. With the introduction of NISAs, that restriction went away and unless the provider has a rule about holding uninvested cash for long periods, there are no restrictions.

QuietlyCautious

Thank you all for the answers and it has clarified things for me. Just that sometimes what seems simple and possible isn't always and would rather keep on the good side of the taxman !