S and s ISA tax on sold shares

dawnsavesmoney17

Under the newly proposed rules, if I sell some of the shares in my s and s ISA to pay for medical bills ie. Withdraw the cash, will I pay tax on the amount withdrawn? If so, can this be avoided?

dunstonh

There are no proposed rules regarding withdrawal from an ISA or sales of shares within it

Tree_pipe99

In about 9 months time this site is going to be swamped with variations on this question. 🫣

friolento

https://forums.moneysavingexpert.com/discussion/6674977/s-and-s-isa-tax-on-sold-shares

You would only be liable to tax on any INTEREST your cash earns if you leave it uninvested in your S&S ISA (or put it into any non-ISA account which pays interest). As you imply you would use the sales proceeds to pay for bills etc, your cash wouldn't earn interest, and therefore no tax would be due. Outside ISAs, you still retain your Personal Savings Allowance, at least as legislation stands for now.

Does your S&S ISA provider pay interest on uninvested cash? Because not all of them do.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82057358#Comment_82057358

Unless the new Chancellor blocks it, or more likely delays it for ' further consulations' .

friolento

https://forums.moneysavingexpert.com/discussion/comment/82057577#Comment_82057577

Fingers crossed!

Aretnap

Under the newly proposed rules, if I sell some of the shares in my s and s ISA to pay for medical bills ie. Withdraw the cash, will I pay tax on the amount withdrawn?

No.

If so, can this be avoided?

N/A

eskbanker

https://forums.moneysavingexpert.com/discussion/6674977/s-and-s-isa-tax-on-sold-shares

The above posts answer the question you asked, but from a wider perspective it's not ideal to have to be liquidating share holdings to generate available cash for bills, as the value fluctuations could work against you, potentially significantly, and you could end up losing money. Better to have some form of emergency fund in cash form, and if you don't currently have one then worth considering some disinvestment into a cash ISA before the new rules come into play…

dawnsavesmoney17

many thanks to all for your input. I find it all very confusing. I wouldn’t normally realise an isa but my age is now a factor.