Selling in ISA - Vanguard

Roselondon_2

What would happen when I sell part of my investment in the ISA account? Can the cash stay in the account before being reinvested to a different product? If the cash comes out straight to my current bank account, do I lose this part of ISA yearly quota as has already been invested? Or I can sell and reinvest freely as long as under the £20k cap?

Aceace

The funds would be held as cash within the ISA wrapper. You are free to buy and sell investments within the ISA wrapper as many times as you like without any tax implications. They only exit the ISA wrapper if and when you withdraw them to your bank account. 

jeelz

As I understand it even if you did withdraw your money to your bank account, because the Vanguard ISA is a ‘flexible ISA’, as long as the money is replaced into the Vanguard ISA account before the end of the tax year it would not affect your annual allowance.