Vanguard stocks and shares ISA

roop298

How does this work?  Do I put £20k into their S&S ISA then buy any other funds or do the returns of any funds I buy automatically go into the ISA £20k space until it totals £20k?

Cheers.

masonic

You have £20k per tax year that you can contribute. Any returns within the ISA do not count towards this.

tebbins

roop298 said:

How does this work?  Do I put £20k into their S&S ISA

Yes
 then buy any other funds

No, you can either a. Put your £20k in and leave it as cash b. Buy £20k worth of funds by debit card, using up your ISA allowance for that year or c. Put your £20k in as cash, wait for it to go through, then once the cash is in your Vanguard S&S ISA use that cash to buy funds
or do the returns of any funds I buy automatically go into the ISA £20k space until it totals £20k?
No. That couldn't work. You have a £20k annual ISA contribution allowance. Every year you can put £20k into ISAs, but only into one per each type of ISA in the same tax year. So you can't contribute into a Vanguard S&S ISA and say a Nutmeg one in the same tax year. Once money is in an ISA, the return you get has nothing to do with how much you can put in in future. If you bought £20k of Tesla shares last April you'd be sitting on an ISA with over £100,000, which would have nothing to do with your future year allowances.

Cheers.

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