Deposit Vs Investment via Shares and Stocks ISA

infoexchange

I have an S&S ISA. A couple of questions, please.

1.If I deposit funds in the ISA account, do I need invest them for them to be accounted as ISA contribution. For example, I deposit 10K and only invest 5K, have I used 10K of my yearly allowance or 5K?

2. If I invest via ISA in the year 20/21 allowance and sell the stocks in future (after April 2021 but before April 2022). Will it impact the yearly saving allowance for the year 21/22.

eskbanker

infoexchange said:

1.If I deposit funds in the ISA account, do I need invest them for them to be accounted as ISA contribution.

The annual allowance relates to contributions of new money into the ISA, so what you do with it once within the ISA makes no difference.

infoexchange said:

For example, I deposit 10K and only invest 5K, have I used 10K of my yearly allowance or 5K?

£10K.

infoexchange said:

2. If I invest via ISA in the year 20/21 allowance and sell the stocks in future (after April 2021 but before April 2022). Will it impact the yearly saving allowance for the year 21/22.

No.

infoexchange

Thanks @eskbanker for taking time to reply. Much appreciated.