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, let’s say, 50% equity ETFs and 50% bond ETFs in my ISA account, and a sudden surge of the equities ETF means …

Hey @mmmmmmrk , :wave: 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 to…

Hot damn, ISAs really are magical. Thanks! This means I can rebalance inside an ISA as I want :blush:

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, it’s taking out and putting back you need to avoid unless you’re never investing near the limit - 20K a year now is fairly generous …

@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 :rofl:

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 :slight_smile: Or would that affect the allowance again?

Let’s 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 ‘move funds’…

Thank you Dao, this part makes sense. Now let’s 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…

UK, ISA, allowance, rebalancing: can I rebalance without killing allowance?

🤝 Help

nickspacemonkey April 8, 2020, 4:07pm 6

I don’t know how difficult it is to implement but you can get flexable ISAs. Apparently it’s optional and providers don’t have to offer it. Again, I don’t know what costs or complications are of doing so.

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UK, ISA, allowance, rebalancing: can I rebalance without killing allowance?

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