ISA questions - Help

A couple of ISA questions.

  1. At the start of a new tax year eg 6th April 2021, do you automatically get access to another £20,000 allowance or do you have to open a new account?

  2. If I’ve got 2 ISAs running from concurrent years and say I’ve invested £20,000 in each year and the shares are worth £42,000. Can I sell £40,000 of those shares and reinvest say £35,000 at a later date that year or can I only invest £20,000 in each tax year?



So you’ll get a new 20,000 allocation, so the counter will be reset to 0.

Once you transfer money into the ISA account you can buy and sell to your heart’s content. When you sell it goes back into the available funds. Any profit you make doesn’t count towards your allocation.

However If you put in £5000, and then transfer £1000 back into your bank account and then put £1000 back into the ISA you would used £6000 of your £20k allocation.


Also, to add to what phil mentioned above:
When transferring money around between ISA’s, always do it via ISA Transfer Forms, and not via a normal bank transfer, otherwise the money will lose it’s ISA status.

In any one tax year you can pay money into any type of ISA, providing it is not of the same type in any one tax year.
So you could put 10k in a S&S ISA and 10k into a cash ISA.
What you CANNOT do though, is put 10k in a S&S ISA, then open up a new S&S ISA with another provider in that same tax year and pay the remaining 10k in.
Also, you can only pay in 20k per tax year, regardless of what type of ISA you put your money in.

Any profits made in a S&S ISA can be reinvested, no issue there, it’s free money from then on :slight_smile: Reinvest to your hearts content.

The awkwardness of ISA’s only really apply when taking money out of the ISA wrapper or putting money into an ISA. Always use ISA transfer forms if transferring from an existing ISA. If paying money in from a normal savings account, then you can use card etc no problem.

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And the only exception to the four types of ISA is LISA where the max you can put in is £4k of that £20k allocation between them within that tax year.

So you can have a cash, stocks, lifetime, and innovative finance (P2P lending) ISAs.

I recently opened as ISA account. For the next ISA year, do I have to take out the money from my current ISA account? To put back into the new ISA account (starting April)?

Or my current ISA account will still be active next year?

It’ll still be active.

Essentially the ISA utilisation will go back down to zero allowing you to put in another £20k within the 2021/2022 tax year.

Don’t take the money out, and put it back in otherwise you’ll be eating into your allocation.

Hi folks,

Complete noob here.

Looking to open my first ever S&S ISA with Trading212 for Tax Year 2020/21. Questions are:

  • what happens to this account for Tax Year 2021/22?

  • will I have to open a new S&S ISA account for 2021/22 or will this account itself be “rolled into” another account for that Tax Year?

  • After Tax Year 2020/21, I believe I cannot pay into the account I opened during that year anymore. So, how does the system work in terms of making sure my payments are going to the account valid for 2021/22?

(I did warn you earlier about being a noob so the questions hopefully don’t sound too stupid)


If you open an account this year you can this account in a new tax year and it will give you a new allowance. You do not need to open a new account. The ISA will roll over to next tax year seamlessly… when you transfer money into your account next tax year it will just work. So eg if you transfer money in may 22 it will just put it onto 21/22 tax year. You have to do nothing.

If you want to open a new ISA 21/22 with a different supplier you can but you must not add money to your ISA in 20/21 if you are past the cut off period.

Thanks for the reply @Edwardftt.
So, it is for the platform to make sure that when we transfer money in, it is applied to the allowance of that tax year. And when our investments earn returns/dividends, they are applied accordingly so as not to be confused with new deposits. Am i getting that right?

Any dividends/returns are not included to your ISA allowance at all and are not taxed.

The ISA allowance is only for money you put in yourself, not from dividends on you buying and selling stocks.

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Not taxed (other than taxes from the shares country) sorry meant to add if you are buying stocks from another country

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All superb responses. Many thanks @Edwardftt and all others who have taken/will take time to read my questions.

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So from the UK buying a American stock you will get taxed at Americans tax rate for any dividend. All money that you received in your actual account is your to spend on whatever you like with no further tax implications


If I want to withdraw money from my isa to my bank do I have to do anything different than normal? It is the same process as you would with invest account etc


It is the exact same process. Just be aware that the funds will be removed from the ISA wrapper so could have tax implications.

Thanks for the reply.

Do you know what the tax % would be?

Withdrawing in itself doesnt have a tax charge. Realising profits and losses etc has some implications if you have other assets but I don’t know all the ins and outs. If you are nowhere near your tax limits you will probably be ok.

Thanks :grin: I’ll look into it

Silly question as I’m Still learning.

If you have a stock that’s gone above the 20k isa limit for example 60k if sold that stock would you get the full 60k into your isa account?

Yes. The 20k is a deposit limit. Money you take from outside the ISA and deposit yourself. Anything that happens within the ISA has no limits.

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