Are profits over 20k still tax free in a ISA

Tonys101

What happens if I make over 20k profit in a ISA is it still tax free anything over 20K

MX5huggy

Yes. The £20k is the annual limit of how much new money you can add to ISA’s growth within in is unlimited.

Tonys101

MX5huggy said:

Yes. The £20k is the annual limit of how much new money you can add to ISA’s growth within in is unlimited.

Can I make a profit of over 20k for example if I sell my shares and make 22k profit will I had to pay tax 

For example if my £20,000 shares go up to over £41,000 in price will I have to pay tax on then in ISA 

Linton

Tonys101 said:

MX5huggy said:

Yes. The £20k is the annual limit of how much new money you can add to ISA’s growth within in is unlimited.

Can I make a profit over 20k for example of I sell my shares and make 22k profit will I had to pay tax 

Mx5huggy has said it clearly.  Let me re-emphasise. Whatever happens within an ISA is free of income tax and CGT. The only limit is how much new money you can contribute. Any profit you make within the ISA is tax free.

Tonys101

Linton said:

Tonys101 said:

MX5huggy said:

Yes. The £20k is the annual limit of how much new money you can add to ISA’s growth within in is unlimited.

Can I make a profit over 20k for example of I sell my shares and make 22k profit will I had to pay tax 

Mx5huggy has said it clearly.  Let me re-emphasise. Whatever happens within an ISA is free of income tax and CGT. The only limit is how much new money you can contribute. Any profit you make within the ISA is tax free.

Only asking because a guy at work was telling me I was wrong and had me questioning my knowledge

CKhalvashi

Deleted_User said:

"What happens in the ISA, stays in the ISA."

I was just going to post this, great minds think alike etc!

Thrugelmir

Tonys101 said:

Linton said:

Tonys101 said:

MX5huggy said:

Yes. The £20k is the annual limit of how much new money you can add to ISA’s growth within in is unlimited.

Can I make a profit over 20k for example of I sell my shares and make 22k profit will I had to pay tax 

Mx5huggy has said it clearly.  Let me re-emphasise. Whatever happens within an ISA is free of income tax and CGT. The only limit is how much new money you can contribute. Any profit you make within the ISA is tax free.

Only asking because a guy at work was telling me I was wrong and had me questioning my knowledge

You can now question his. 

xylophone

You can now question his. 

And show him this

https://www.gov.uk/individual-savings-accounts/how-isas-work

You do not pay tax on:

• interest on cash in an ISA
• income or capital gains from investments in an ISA

If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it.

dunstonh

Tonys101 said:

Linton said:

Tonys101 said:

MX5huggy said:

Yes. The £20k is the annual limit of how much new money you can add to ISA’s growth within in is unlimited.

Can I make a profit over 20k for example of I sell my shares and make 22k profit will I had to pay tax 

Mx5huggy has said it clearly.  Let me re-emphasise. Whatever happens within an ISA is free of income tax and CGT. The only limit is how much new money you can contribute. Any profit you make within the ISA is tax free.

Only asking because a guy at work was telling me I was wrong and had me questioning my knowledge

That is called blind leading the blind.

There are people with over £1m in ISAs.   There is no limit to what they can grow to. The only limit is the annual contribution allowance.

The_Fat_Controller

@dunstonh

Yes, I peaked on 6 September !

Albermarle

Tonys101 said:

Linton said:

Tonys101 said:

MX5huggy said:

Yes. The £20k is the annual limit of how much new money you can add to ISA’s growth within in is unlimited.

Can I make a profit over 20k for example of I sell my shares and make 22k profit will I had to pay tax 

Mx5huggy has said it clearly.  Let me re-emphasise. Whatever happens within an ISA is free of income tax and CGT. The only limit is how much new money you can contribute. Any profit you make within the ISA is tax free.

Only asking because a guy at work was telling me I was wrong and had me questioning my knowledge

With investments in an ISA  you do not have to pay any Capital Gains Tax or dividend tax . You can tell the 'guy at work' that is the actual reason to keep investments in an ISA !