Profits from trading/crypto/trading, how are they taxed?

Amazin

My assumption is that profits from stocks/crypto/trading are free from CGT as long it's within the £20K per year limit in an ISA? If you max out the ISA allowance it will count as a personal income so it will be taxed normally? Please correct me if I'm wrong

InvesterJones

Stock gains and trading within an ISA wrapper are free from tax. I don't think it's possible to put crpyto inside an ISA wrapper, so that will attract full CGT.

ColdIron

• Can you put crypto in an ISA?

• No, you can’t hold crypto in an ISA

https://www.finder.com/uk/crypto-banking/crypto-tax-uk-rules#can-you-put-crypto-in-an-isa

EthicsGradient

Amazin said:

My assumption is that profits from stocks/crypto/trading are free from CGT as long it's within the £20K per year limit in an ISA? If you max out the ISA allowance it will count as a personal income so it will be taxed normally? Please correct me if I'm wrong

Your wording is ambiguous. £20k is the amount of new cash you're allowed to add to an ISA account each year. Within an ISA account, all profits - dividends, capital gains, interest - are free from tax, whatever their size. If you have added the maximum 20k to your ISA accounts in a year (it can be split among many accounts now), then any more cash would have to be invested outside an ISA. Dividends and/or interest from that would be taxed each year, and capital gains would be assessed in the year you sold it (or part of it).

DoctorStrange

Forgive me if I'm stating the obvious here but there's no "£20k ISA allowance" which you can use to deduct from your overall capital gains / income.

There is of course a maximum amount you can invest in an ISA each year and all capital gains / income within that account are free from further taxes.

It's just the OP read to me as though they were perhaps thinking that, if they made £25k from trading stocks in a GIA and/or on Crypto, they could then deduct £20k and have only £5k liable for CGT / income tax so I thought it was worthwhile clarifying