Stocks and Shares ISA

[rooney1000]

Been googling away but I cant seem to find a simple answer to what I think is a simple question. Am sure someone on here can help !

If I open a stocks and shares ISA and transfer the full allowance, £15k odd, of shares into the ISA (so not cash, shares) then can someone help with the following:

- If the share price of the shares goes up, therefore say increasing the value of the shares / ISA to £20k, is that OK, in that it is obviously over the annual allowance but assume that is accepted

- Can I just add to the same ISA year on year, so for 2017 when allowance goes up to £20k I can just add that on top of the £15k, so ISA allowance is £35k ?

- If I decided to sell my shares at any point, either a day after I open the ISA or in a few years, do I have to pay any CGT at all ? So even if share price really rockets and I make a big profit I still wouldn't have to pay any CGT ?

I know these will be basic questions for some people but just cant find the simple answers !

[craig1912]

-yes

-yes (the allowance is the amount you can pay in each year)

-no

[FredClogs]

The allowance is per tax year. You can't roll it over.

There's no tax to pay on the money in the isa or the profits reinvested in the isa, either interest, dividends or capital growth, or when it's taken out.

http://www.moneysavingexpert.com/savings/ISA-guide...

[Jon39]

rooney1000 said:

Been googling away but I cant seem to find a simple answer to what I think is a simple question. Am sure someone on here can help !

If I open a stocks and shares ISA and transfer the full allowance, £15k odd, of shares into the ISA (so not cash, shares) then can someone help with the following:

- If the share price of the shares goes up, therefore say increasing the value of the shares / ISA to £20k, is that OK, in that it is obviously over the annual allowance but assume that is accepted

- Can I just add to the same ISA year on year, so for 2017 when allowance goes up to £20k I can just add that on top of the £15k, so ISA allowance is £35k ?

If I decide to sell my shares at any point, either a day after I open the ISA or in a few years, do I have to pay any CGT at all ? So even if share price really rockets and I make a big profit I still wouldn't have to pay any CGT ?

I know these will be basic questions for some people but just cant find the simple answers !

The answer to most of your questions is yes.
One point though.
You cannot transfer your existing shareholdings into an ISA.
The rules require cash to be paid in, then effectively the ISA will make new share purchases. Your chosen ISA provider could do a sale and repurchase for you. You could even take a chance and sell your holdings, pay into the ISA, hope the prices have fallen, then the ISA buys back at a lower price. Good luck with that though.

You might want to choose a provider which caps their annual charges. You can get an unlimited fund for a capped fee of £30 plus VAT per annum. Percentage charges might look attractive until your ISA fund reaches higher levels.

Edited by Jon39 on Tuesday 3rd January 14:03

[rooney1000]

Thanks for the replies everyone. On the last point - I think I understand that but I have a sharesave scheme that has just matured and my understanding was that I can transfer these into a stocks and shares ISA if done within 90 days (think that is right) ?

[fat80b]

rooney1000 said:

Thanks for the replies everyone. On the last point - I think I understand that but I have a sharesave scheme that has just matured and my understanding was that I can transfer these into a stocks and shares ISA if done within 90 days (think that is right) ?

Correct - there is a special rule for proceeds of a sharesave scheme that allows them to be transferred into an ISA without the tax hit. I did this into a First Direct ISA a few years ago and it was relatively straight forward to arrange.

Bob