use the same S&S ISA every year?

new to the forum but lurked a bit, great pool of info on here.
i have 2 Qs which i cant find an answer to online.

if i open a S&S ISA this year (20/21) and invest the full 20k, can i then use this same account in the year 21/22 with its new allowance? lets say it will be 21k in year 21/22 for this example.

if yes, does that mean my 21/22 account will look like this;
20k already invested from previous year + 21k new allowance available to invest.
or will it look like this;
20k already invested from previous year + 1k only of the new allowance available to invest as i already have 20k in the account.

can i use the ISA account to do day trades? if so, how does that effect the allowance?

Q1. You can invest the full 20/21 allowance. I would be shocked if it rises to 21k. More likely to be cut if it changes at all.

Q2. Yes. No affect on allowance.


Q1. Can I use the same account for the new ISA year or do I have to open a new one? Also, I didn’t quite understand which outcome it will be regarding my scenarios.

Q2. How are the funds treated from stock sales? Do I get them as cash so I can reinvest as part of my remaining ISA allowance?

Q1: You do not need to open a new ISA. You simply add new money to the ISA you already have, up to the 20/21 allowance.

Q2: The proceeds of sales of stock within your ISA, and any dividends received, do not count against your allowance. On April 6 you can deposit £20k. All gains obtained thereafter on investments made in your account remain tax free.

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Q1. Say I’ve used the max allowance in 20/21. In the new year do I get the new allowance that can be used on the same account? Eg. Say 20k already in the ISA account plus the new allowance?

Q2. Great, that clears that up!

I’m experienced in (crypto) trading but new to the ISA trading market.

Q1. Yes. You get a full new allowance to add.

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When you try to deposit money for the first time, in a new financial year you’ll get a heads up alert saying “hey this is a new financial year, are you sure you want to keep investing with us?” :slight_smile:

side note ISA allowance has not changed for centuries now so… I guess it’ll still be 20K

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Good to know thank you.
Only have 1k to play with at the moment, so still not sure if I should trade in the ISA or invest account.
Would have liked to long tesla but won’t get a lot for 1k so the alternative was to short on many others in the Invest account.

centuries LOL :joy: certainly been a while but its only about 4-5 years at £20k, before then we actually got a bunch less. Just wish this year would be the next increase, or worst case next year.

@Koys if you have less than £20k to invest with and you want to do so in stocks, ISA is the way to go as it protects you from taxes. however there are assets that can’t be invested in via the ISA, which is a selection of ineligible stocks, commodities, forex et cetera.

you can’t short in the invest account unless via a holding that is shorting the asset on your behalf. That said with the way Tesla has been behaving, £1k can still get you a decent return if you buy in at the right moment, then time in the market will reward you for not missing the opportunity :wink:

Thanks for the info. I will defo be investing in the ISA option once I see a dip in the market, will most likely be a pie invest and a couple single stocks.

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