Tax on Share dealing account and share isa???

Murph13

Hi,

Can anyone exolain in detail when cgt is liable on profits from shares within these two different accounts.

I've been told different things by different people so not sure whats right or wrong. In a shares isa people say you do not pay capital gains tax on your isa whilst others have told me you do but only when you withdraw the funds from the isa, so basically you can benefit from only withdrawing smaller amounts each year and paying less tax each year rather than paying the big lump sum for the whole amount.

So which one is it, no cgt or only when you withdraw amounts from the isa?

And with a share dealing account you have to pay the tax on it in that tax year whether the profits are still in the share dealing account or if you've transferred them to your bank. Is that right?

Im sooo confused lol

Thanks in advance for any info.

eskbanker

No CGT payable on any growth within an ISA, even when sale proceeds are withdrawn.

And yes, in an unwrapped account, CGT is payable whenever the growth is realised by selling the shares, regardless of where those funds go after that.

jimjames

Murph13 wrote: »

I've been told different things by different people so not sure whats right or wrong. In a shares isa people say you do not pay capital gains tax on your isa whilst others have told me you do but only when you withdraw the funds from the isa,

Whoever told you that you pay tax on an ISA has no idea what they are talking about. The whole point of an ISA is that the money inside them is entirely tax free.