If I sell a share in my stock & share ISA can I reinvest without using up my ISA allowance?

jonj123

Hi,

Say I have some stocks in my stocks and shares ISA and I have not used up any of my 20K allowance for this years' ISA. Then I decide to sell 5K worth of stocks I currently hold. My question is - does this mean I can invest 25K (20K+5K) this financial year?

Thanks in advance

AnotherJoe

Its a bit like Vegas, everything you do in your ISA, stays in your ISA.

So, if you sell £5k of stocks thats within your ISA, the £5k stays there. If that £5k was already there prior to the 6th, then you can add another £20k this tax year,and you'll have £25k "to invest" but only because £5k was already there from the previous tax year.

dunstonh

An ISA is a tax wrapper. A container for your investments. As long as the money stays in the container, you are not using any ISA allowance. It's only if you draw it out of the ISA that it becomes an issue. Whilst it remains in the ISA, you can move it around investments as you see fit.

jonj123

AnotherJoe wrote: »

Its a bit like Vegas, everything you do in your ISA, stays in your ISA.

So, if you sell £5k of stocks thats within your ISA, the £5k stays there. If that £5k was already there prior to the 6th, then you can add another £20k this tax year,and you'll have £25k "to invest" but only because £5k was already there from the previous tax year.

Thanks. OK so that's what I'm enquiring about - if I sell 5k worth of stocks THIS tax year, can I still invest 25K in the same tax year (i.e. the 5K I have sold + 20K allowance)?

System

For the third time, YES!

jonj123

Thank you all!

Superscrooge

jonj123 wrote: »

Thanks. OK so that's what I'm enquiring about - if I sell 5k worth of stocks THIS tax year, can I still invest 25K in the same tax year (i.e. the 5K I have sold + 20K allowance)?

You must keep the £5k sales proceeds within the ISA wrapper. You can't withdraw the £5k from the ISA and then contribute £25k.