Stocks and Shares ISA

GREENALL

Afternoon all,


I'm a new to investing and beginning to understand Capital gains tax and how it will affect me. I began investments 6 months ago and I'm beginning to make some decent returns between 100-200%. I've bed and ISA my shares but struggling to grasp the in's and out's of how tax works inside this ISA from HL. I wonder if anyone could clear up a few things for me:-


- Can I only purchase shares up to the cost value of £15,240 inside the ISA?
- Once shares are sold at whatever profit, are they free from CGT?
- Can I keep investing inside the ISA after reached £15,240 but will be trading outside the ISA allowance therefore using my tax-free allowance I.e. £11,000?
- If I sell my shares and hold cash inside the ISA at the sold price, can I re-invest it all or am I limited to £15,240? Is it capped so once I've reached the allowance once I'm unable to use it again.


I know these might be some amateur questions however I'm still quite a young investor and looking for the advice so I can hopefully develop my portfolio as efficiently as possible.


Thanks for your help, much appreciated.


Jordan.

joujou

The limit applies to the amount of cash you push into your ISA from outside ISA.

Once it's in, whatever you do inside is tax free.

I'll let someone else quip about the 100%-200% return.

GREENALL

Hi JouJou,


Thanks for your reply - If I sell the shares at profit am I only allowed to re-invest the amount allowed inside the ISA allowance (£15,240)? and the rest would need to be transferred into either a current bank account tax free or into my fund and share account ready for future investment.


Thank you.


Jordan.

joujou

Any profit can be reinvested inside the ISA tax free ad-infinitum.

You can take it out of the ISA tax free. Any reinvestment outside of the ISA will be taxed outside ISA.

joujou

Think of it like this -

You have two islands. One is called ISA, one is called Tax.

Your tax island has a dragon that watches any population growth and has complex "tax" rules on what to eat each year.

Your ISA island doesn't.

However, you can only ever take 15200 citizens from your tax island to your ISA island per year (rising to 20000 next year).


Your citizens inside the ISA island can shg and reproduce to their hearts contents. Their offsprings can also shg and reproduce to their hearts content. So long as they stay inside the island, nobody touches them.


They can also go to the tax island whenever they want and they won't be touched, but any of their offsprings will now be subject to the dragon whilst there.

They may go back to the ISA island once again but they are again limited by the yearly limit.

The 15200 limit is what you can transfer, not what you can keep.

Thrugelmir

joujou wrote: »

T

I'll let someone else quip about the 100%-200% return.

Is any comment required.

GREENALL

JouJou - That's cleared everything up now. I know they're quite amateur questions but I'll know now for future reference.


Thanks for your help, appreciate it.


Jordan.

fireblade28

Thrugelmir wrote: »

Is any comment required.

Probably! Crazy luck that will eventually become unstuck.

You don't make any more than around 10% annually consistently