Hi!
as I understand it, the yearly 20k GBP ISA allowance pertains to paying INTO your ISA account. Does it also apply to reinvesting profit that ends up inside your ISA account?
If I hold, letās say, 50% equity ETFs and 50% bond ETFs in my ISA account, and a sudden surge of the equities ETF means I sell some for profit that I want to invest again into my bond ETFs to get back to my 50/50 ratio, would that reinvested profit count towards my allowance if it never left the ISA account?
Hey @mmmmmmrk, 
Any gains you make on your investment are not counted as part of your stocks and shares ISA allowance, i.e. gains are profits you make from your investments.
If you sell any shares in your stocks and shares ISA, you can reinvest the proceeds in the ISA. They will not count towards your annual allowance either. 
Hot damn, ISAs really are magical. Thanks! This means I can rebalance inside an ISA as I want 
Yes you can do whatever you want inside the ISA. However if you withdraw these profits and then deposit more money later this counts as a contribution
Over a few years you can build up a decent amount in ISAa without any concerns about capital Gains Tax. Shifting things around within the ISA wrapper is quite normal, itās taking out and putting back you need to avoid unless youāre never investing near the limit - 20K a year now is fairly generous as a limit.
I donāt know how difficult it is to implement but you can get flexable ISAs. Apparently itās optional and providers donāt have to offer it. Again, I donāt know what costs or complications are of doing so.
@nickspacemonkey they can be found, but for now it is not the ISA type as provided by T212 so not of much good to any of us 
I suppose it is somehow possible to transfer money between a non-T212 cash ISA and T212? Then they are of some use, if cumbersome 
Or would that affect the allowance again?
Letās say I gave 10k on my invest account. I plan adding up approx 500 a month in various shares to build long term position. Is it to late to start with ISA? How can I move my 10k worth of shares from invest account to ISA as well as my balance?
you cannot move any shares into an ISA from outside of one period.
tax laws prevent this as all investments are taxable assets upon sale and you can only deposit funds into an ISA after all relevant taxes have been paid.
You would have to sell the shares in the invest account, use the āmove fundsā feature to put those funds in your ISA and then re-purchase your shares. this may mean paying slightly more/less depending on the market direction for the day and general volatility. repurchasing right after selling allows you to minimise the markets influence, but there will always be some.
Itās never too late to start investing with your ISA, just make sure you have the money to cover any taxes you must pay as a result of closing your positions.
Thank you Dao, this part makes sense.
Now letās talk year1+ scenario
Year 1 : I sell all my shares from invest, move the capital to ISA and purchase same shares ASAP. Limit is 20k funds put into ISA in a single tax year
Year 2 : I add 1.5k of funds a month to ISA, to make sure I do not exceed 20k yearly allowance.
Year 3 : Same as year 2 and so on for years to come.
Now the questions
Q1: Can I keep adding 20k funds a year to ISA so letās say after 5 years it becomes 100k and so on or 20k in total is a limit at any given time?
Q2 : If within one year I put 20k of funds into ISA and it turns out shares double in value making it a 40k in total it is still OK for that fiscal year? Doesnāt matter how much the portfolio will grow as the ISA limit of 20k is only for the funds put in right?
Thanks
this is correct. only deposits are tracked, growth and withdrawals arenāt.
And when does the tax year on ISA does finish?
The tax year begins April 6th (edit: as corrected below 
). So April 5th would be your final chance to use your allowance before the limit resets.
UK tax year starts 6 April. You can use allowance up to 5th April inclusive.
It all began in 1582 when Pope Gregory XIII ordered a change of calendar from the Julian (named after Julius Caesar), which had been in use since 42 BC.
Until 1752 the tax year in Great Britain started on 25th March, old New Yearās Day.
6th April ā¦
haha slipped there, to be fair I usually donāt have any transactions between march and april
also reminds me of plenty of other things in the calendar that donāt make sense to me
Great stuff, thank you guys. Will start making preparations to take the full advantage ISA gives.
One more question
Assuming I might be able in the future to put more than 20k a year into shares, I guess the plan is to put first 20k i to ISA and all remaining money into invest right?
correct if you want to be investing all that money. perhaps you might want to trade, in which case you could put some of the excess into the CFD account, or perhaps you can invest directly with a company or even start your own, or you may want to use those funds to improve your lifestyle or skills.