ISA helping to understand

Help
#1

Hi Folks,
I am wondering if anyone could shed some light in this for me. I have all my current investment on my Invest account on 212.

  1. Am I correct to think I can transfer £20k from there (Invest) onto the ISA account and this per year which wont be taxed including any gain ?
  2. Can I withdraw only the gains (which wont be taxed) and keep the initial £20K in there ?
  3. Do I have to own the £20K invested in shares or can I sell/buy/hold as I am currently doing on the Invest Account ?
#2
  1. Only gains earned on assets inside an ISA wrapper are not taxed. If you made more than 12,300 in realised capital gains this year, they will be taxed.
  2. You can withdraw as much as you hold in an ISA. If you sell assets that have made more than 12,300 in net gains this year outside an ISA, you will have to pay tax.
  3. You can hold cash in the wrapper.

Thats my understanding.

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#3
  1. No. The tax exemption is for the profits you make from trading inside the ISA and not for the money you deposit.
  2. Yes
  3. The ISA works exactly the same as Invest.
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#4

no tax is charged for withdrawing any funds from an ISA. noting as some people get confused by this part.

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#5

Agree - but the question didnt make clear the gains were earned inside or outside an ISA wrapper. reworded slightly my response to make clearer.

#6

@Damiansasha if you use the search bar and enter “ISA @Dao” you will find me answering a whole plethora of question relating to ISA’s that should cover all aspects that may cause confusion.

some of my answers are much more comprehensive, but I am currently heading somewhere and didn’t think to save a bookmark to my best answer :sweat_smile: I can edit it in later once I get back.

#7

Dao, will do ! Thank you very much for your help :sweat_smile: