Is capital gains tax allowance on top of ISA allowance?

jimjames

w00519773 said:

w00519773 said:

Albermarle said:

I meant Number 2 is the answer.
On the second point , when you contribute cash to a S&S ISA, it does not matter where the money originated from .
You can put in max £20K ( assuming no contributions to other ISA's in that tax year ) and it can come from dividends from investments already held, it can come from cash savings , it can come from an inheritance , a win at the races etc 

Thanks.  Lets say I made a capital gain of £13,000 (£700 above the capital gains tax allowance of £12,300) using Interactive Brokers and I only invested £5,000 in Charles Stanley Direct for the year so far (that is about what I invest).  Could I move the £13,000 (or even just the £700) to Charles Stanley to benefit from the favourable tax treatment i.e. not pay tax on the £700 above the capital gains tax allowance (13,000-12300).  I believe the answer is no, however I want to be sure before I think about opening a live Interactive Brokers account.

That was the question I was answering earlier!  As you say, the answer is no - as soon as you sell your holding, it crystallises the £13K gain, thereby triggering a CGT liability on the surplus £700, and reinvesting the proceeds within an ISA makes no different to that gain, although it prevents future gains on those repurchased investments from tax.

You still seem to be mixing up different concepts - if you've realised a gain of £13K it's very unlikely that the value of that holding will be £13K, so you'd be paying more than £13K into the ISA in this scenario....

thenewcomers answer to my other question here seems to contradict this answer: https://forums.moneysavingexpert.com/discussion/6238340/do-any-uk-citizens-on-here-use-interactive-brokers/p1

No contradiction at all. You can pay any money into your ISA up to the £20k limit per year. It makes not a jot of difference where that money comes from, whether it's from gains on investments outside an ISA, wages from employment or cash savings. I guess drug dealing proceeds might be a problem but essentially the origin of the money makes no difference as long as it's from a legal source

As above you seem to be mixing gains and proceeds. To get a gain of £13k it is very unlikely you'd have originally purchased the asset for £1 so assume it was £10k originally and had grown to £23k to give your £13k gain. You couldn't pay the £23k into your ISA in one tax year although you could pay in £20k one year and the remaining £3k the next. 

eskbanker

w00519773 said:

w00519773 said:

Albermarle said:

I meant Number 2 is the answer.
On the second point , when you contribute cash to a S&S ISA, it does not matter where the money originated from .
You can put in max £20K ( assuming no contributions to other ISA's in that tax year ) and it can come from dividends from investments already held, it can come from cash savings , it can come from an inheritance , a win at the races etc 

Thanks.  Lets say I made a capital gain of £13,000 (£700 above the capital gains tax allowance of £12,300) using Interactive Brokers and I only invested £5,000 in Charles Stanley Direct for the year so far (that is about what I invest).  Could I move the £13,000 (or even just the £700) to Charles Stanley to benefit from the favourable tax treatment i.e. not pay tax on the £700 above the capital gains tax allowance (13,000-12300).  I believe the answer is no, however I want to be sure before I think about opening a live Interactive Brokers account.

That was the question I was answering earlier!  As you say, the answer is no - as soon as you sell your holding, it crystallises the £13K gain, thereby triggering a CGT liability on the surplus £700, and reinvesting the proceeds within an ISA makes no different to that gain, although it prevents future gains on those repurchased investments from tax.

You still seem to be mixing up different concepts - if you've realised a gain of £13K it's very unlikely that the value of that holding will be £13K, so you'd be paying more than £13K into the ISA in this scenario....

thenewcomers answer to my other question here seems to contradict this answer: https://forums.moneysavingexpert.com/discussion/6238340/do-any-uk-citizens-on-here-use-interactive-brokers/p1

As jimjames points out, there is no contradiction.

You effectively asked on the other thread if you could move a gain from unwrapped to wrapped, to which the answer there (and here) is yes, you can.

However, the question you asked on this thread was whether you can avoid CGT by doing so, to which the answer remains no, if the gain exceeds your annual CGT threshold....