Selling a fund from a previous years ISA allowance - can I buy without impacting this years?

suffbet3

Hi, 

I have an investment trust in an ISA that i'll have purchased in the previous tax year which i wish to sell and then with the proceeds purchase another trust/fund in the same stocks and shares ISA so would that purchase come out of this current tax years allowance or the previous years?

Additionally I've also opened a stocks and shares ISA with a different company to the above this tax year (invested £3k) does that impact me subscribing for this year with the original ISA supplier or is it ok as long as the total invested is under £20k

Thanks in advance for any help.

eskbanker

Buying and selling within the ISA isn't affected by, and doesn't affect, the £20K annual contribution allowance or the rules about only paying new money into one ISA of each type per tax year, so you can sell and repurchase investments without using any allowance or breaking any rules.

You can't, however, pay new money into two separate S&S ISAs this tax year (a rule which will no longer apply from next April).

Janie2008

You are better switching the fund rather than selling and rebuying. It's the same thing effectively but it's quicker than selling and rebuying as it's done on consequtive days.

MDMD

Janie2008 said:

You are better switching the fund rather than selling and rebuying. It's the same thing effectively but it's quicker than selling and rebuying as it's done on consequtive days.

The OP has an investment trust not a fund which are listed investments and need to be bought and sold.  Depending on the platform they may need to wait until the funds settle as well, or some may allow them to re buy while the settlement is still pending.

masonic

I think it is quite rare that you'd need to wait for settlement to reinvest (though common to need to do so before withdrawing). Likely that both orders can be executed on the same day depending on the nature of the fund being bought and its cut-off time if an OEIC/UT.