ISA stocks and shares limitations?

parking_question_chap

Aside from the £20k limit and only account per year are there any limitations with these? I am specifically wondering if you only do a certain amount of trades a year? or only buy and sell up to a certain value? Are you allowed to hold cash in these if you sell out of a stock or must be it get reinvested into another stock?

Albermarle

parking_question_chap said:

Aside from the £20k limit and only account per year are there any limitations with these? I am specifically wondering if you only do a certain amount of trades a year? or only buy and sell up to a certain value? Are you allowed to hold cash in these if you sell out of a stock or must be it get reinvested into another stock?

Legally/tax wise the number of trades is not relevant , nor is the holding of cash a problem.
However not all ISA providers are the some may have their own restrictions .

Alexland

If you are selecting your own investments on a DIY platform they will hold uninvested money in the S&S ISA cash balance. The simpler S&S ISA accounts with less choice might force you to be invested in one of their funds at any one time with no concept of a cash balance. Some providers have trade limits such as Fidelity don't allow over £200k in a single transaction so with large amounts you may need to submit multiple orders. Similarly some might have minimums. Check with the provider for what you are intending to do or give us more details and we may have the experience with the provider to confirm what is possible.

masonic

There is no longer a restriction preventing cash being held long term in a S&S ISA, or holding ultra-low risk assets in a S&S ISA. The only slightly esoteric restriction is that cash may only be held in GBP, which means a currency conversion must be carried out when receiving foreign currency dividends or trading in assets priced in another currency.

There are reports of day traders using S&S ISAs, so frequent / high volumes of trading are not an issue either.

So it all comes down to what restrictions specific providers choose to impose.