So I am new to investing through the Stocks ISA. I know there is a £20,000 limit yearly from April to April. My question is, if I invest £5000 into a stock sell it with a profit of lets say £1000 then reinvest the whole amount now being £6000 have I used £11,000 of my limit or still the original £5000 limit?
£5000, the limit is on any money you put in
1 Like
If you deposited £5,000, and made £1,000 of profit, as abey rightly said, you still only used up the £5k allowance for this tax year, meaning you can still deposit another £15k into your ISA.
In other words, the amount of money you make or lose in your ISA, does not impact the £20k yearly allowance.
The government gives you a £20k ISA allowance per tax year, which only resets at the beginning of each tax year.
Regardless of how much or little you deposit, on the 6th of April each year, the allowance resets back to £20k.
The one thing you probably know but I just to make sure you’re aware of:
Withdrawing money from your ISA does not impact your £20k yearly allowance, meaning that if you withdraw funds out of your ISA, your allowance allowance will not increase to adjust for that extraction of funds.
So if you deposit £7k into your ISA, then later withdraw £5k, your leftover allowance stays the same as what it was immediately after your last deposit, in this case £13k.
This is wrong. 212 ISA is flexible. When you withdraw funds from a flexible ISA, you can return them in the same tax year only and not impact your original allowance.
No waaaay! I had no idea that T212’s ISA is flexible! 
A Google search says this change happened about 8 months ago.
@Dougal1984 I wouldn’t have known if it wasn’t for you.
Thank you!
1 Like