I have a T212 ISA stocks and shares account. Let’s say I had £1k sitting in the account that was deposited in a previous tax year. I had not gotten round to buying shares with this money yet.
Given the ISA allowance each tax year is £20k, am I allowed to deposit a full £20k into my ISA stocks and shares account or does the existing £1k balance count towards the £20k allowance even though it was deposited from a previous tax year?
Yes, you can deposit upto £20k each year
That £1000 was already from the previous years allowance so you are good to put another £20k in.
That is regardless of whether the cash was used or not.
Sorry for the silly question but from what I understand, once you’ve deposited money in the ISA stocks and shares within the allowance limit of the tax year, what you do with that money doesn’t affect the allowance of the following tax year. So if the money is just sitting there or if you buy shares, buy and sell shares and double your money etc then none of this will affect the allowance of the following tax year?
Yes, you’re correct that only deposits and withdrawals count.