ISA Share dealing questions

joshcyc

Hi everyone,

I have some questions regarding share dealing account.

I put 2016 allowance of £15,240 in my ISA share dealing account and bought some shares. I sold the shares this month and made a profit of £500 so the balance of my account is £15,740. I reinvested the £15,740 in the same ISA share dealing account.

I know there is a new allowance of 20,000 from April 2017.
Does that mean I have to sell my existing shares by then and replace it with £20,000 or the £20,000 allowance is on top of my existing £15,740 so as long as I keep putting new allowance to my account every year then it is accumulated?

Best Regards
Josh

bowlhead99

The 20k allowance from April is how much new money you can add during the year from 6 April 2017. In the following year (i.e. the year after 6 April 2018) you can add another 20k too. And so on with each year's new allowance.

You can keep your existing holdings (including reinvested profits that haven't been taken out of the ISA) so by May your balance could by £35k+. Or if the shares do well, £100k+, for all the taxman cares, as long as you don't break the limits for the maximum admit of new money subscribed in any one tax year.

The new £20k can go into the existing ISA and become part of one bigger pot of assets, or an entirely different S&S ISA with a different provider.

joshcyc

Thank you. That sounds really good.

Does that mean if I put another 20,000 in April, then assuming the balance of my account increased to 100k and I sell everything at end of 2017, as long as I leave 15.4k+20k in my ISA share dealing account then the money I withdraw is tax free and the money left in the account can still trade tax free? Alternatively, I don't withdraw any money and keep reinvesting, then any profit will be tax free?

Thanks

le_loup

All correct. Some people are ISA millionaires through good investing and reinvesting ............. all tax free!