if the value of the shares i have in my stocks and shares ISA go over Ā£20,000, will that be a problem? for example, if i put Ā£10,000 into my ISA and invest it all, then my investments appreciated to any value well beyond Ā£20,000, would I no longer be able to cash them in and withdraw them tax-free?
is the limit only referring to how much money i transfer from my bank account into the ISA each tax year, and does it also include the value of stocks that i liquidate and take out? could i put in Ā£20,000 or less into the ISA in a tax year and withdraw Ā£100,000 worth of liquidated stocks tax-free that same year?
Itās money paid in canāt be more than 20,000, gains are tax free, so transferring in 10k to an ISA, growing it to 100k and withdrawing it all shouldnāt give you a tax liability.
Ye up to Ā£20k a year can be added and any gains are pure profit tax wise hence the term ātax wrapperā I think in the US they have a similar scheme and someone, Buffet maybe but canāt remember, has millions in their account from huge gains.
Edit - Found the link but this scheme is retirement I think but same tax wrapper idea as an ISA.
thank you for the replies everyone! glad to know I can grow my investments to any value and take them out tax free as long as i dont transfer in more than 20k.
another question is, if i sell a share, does the value of that sold share contribute to the ISA limit? e.g. i have added 15k to my ISA and I sell some stock worth 10k from that ISA, does that mean iām now 5k over my annual limit? could i liquidate a stock from an ISA and reinvest that same money into another stock without contributing to the limit? i.e. am i only limited by the amount of money i transfer into the ISA from an outside source? can i invist 20k+ into stock if that moneyās already in the ISA?
You can only add 20k a year ānew fundsā and it wonāt let you do more. Any other money from sell or dividends etc is all locked in the tax wrapper and not part of the 20k
On your ISA page it shows how much you have added but it is only new cash from your bank that effect it.
No. Think of it as you can only add up to Ā£20k of new money into the ISA from an external non-ISA source each year ( direct transfers from other ISAs you may hold donāt count )
Think of your ISA as a ring fenced pool where youāre only allowed to put Ā£20k a year in and youāre free to make (or loose) as much as can. Itās all yours with Rishi touching any of it.
All gains within the ISA are free from income tax and capital gains tax upon withdrawal, whether thatās a regular income or lump sum withdrawal. Thatās how there are ISA millionaires out there. One thing to keep in mind is inheritance tax, as an ISA loses its tax free status on death and forms part of your estate, unless passed to a spouse under the one off permitted subscription rules assuming your provider accepts this.
hence the term ātax wrapperā I think in the US they have a similar scheme and someone, Buffet maybe but canāt remember, has millions in their account from huge gains. 
