Could you guys help me please to clarify a doubt about the ISA account?
I have £5,000 invested in a basic account. For example, If this investment reaches £16,000, I will have £5,000 + £11,000 of income, right? So if I withdraw that full amount, I won’t have to pay taxes because I’m on the limit?
Yes, that is correct
Though it is capital gains not income
It’s not correct.
You have capital gains - not income.
It depends what other capital gains or losses you have in the tax year before anyone can answer the question.
I’m sorry, but I’m still confuse. If this is all my investment, then what gains or losses do you refer to?
Stocks and Shares is the same as buying any asset that may go up or down in value. Another example would be a painting.
When you sell your Stocks and Shares, if they have gone up in value then you have made a capital gain. Just the same as if you sold your painting and it had gone up in value.
For tax purposes this money is not treated as income. It is called a ‘capital gain’.
You are allowed to make a total ‘capital gain’ from all the assets that you sell in a year of £12,300. After that you will have to pay tax. Normally at 20%.
It is Slightly more complicated than that. You should read the government website where it is all explained.
There are no income nor capital gains taxes in an ISA regardless of how much you make…
So my investment would be tax-free in my example, since the value of the capital gain would be less than £12,300 over the years.
I know, but since my investment is small I want to understand how my limit on the basic account works. I intend to open the ISA account, but I don’t want to dispose of the shares I bought at a discount now.
I also had a similar question.
See this thread, some useful opinions here
Yes, as long as you had not made any other capital gains that year that would tip you over the threshold
If you plan to sell your shares in year (with capital gains of less than £12,300) & / or make less than £2,000 in divdends, then it looks like the basic account is all you need. (Opinion - Not advice)
My view on ISA is two fold:
Peace of mind, that whatever gains I make is tax free
Long term investing - I’m not a day trader, and am planning on long term, which means I hope my investments will be worth more than the (current) threshold in years to come. (Bare in mind, the government could & likely will change this threshold at some point).
Mwjdavies sums up my thoughts too. Happy to pay the £3 for peace of mind that I don’t have to worry about what I make being subject to tax, and while the Basic account might actually be more appropriate for me right now, if I decide to immediately or even over the years gradually increase my investments, I don’t want the inconvenience of eventually having to sell all of my shares and move to an ISA.
Another point is that having invested in FT in an earlier Crowdfund round, I really don’t mind giving them the £3 p/m.
Ok for clarification hypothetically if your portfolio increases dramatically and you wanted to withdraw 20k of profits from selling shares, im aware everything is tax free in the ISA I am trying to clarify when you withdraw funds from the ISA are they liable to be taxed if they are above the allowance or is the allowance irrelevant because its an ISA and you can withdraw as much as you like at anytime without being taxed?
Thank you all. I appreciate that. 
It’s in my plans to open an ISA account, I’m just waiting a while because maybe FT will offer a plus account to members soon, so I would make my inclusion.
Yeah, it’s completely tax free. you can withdraw profits from an ISA without paying tax
If selling only an 11,000 gain in a tax year. You will not pay capital gains tax. Correct me if wrong?
That depends if you have any other capital gains in the year. The limit is a total for everything, not just shares in one account.
Again I started only an 11,000 gain. I didn’t say only in shares. 11,000 of gains in anything liable for capital gains
Ok thank you, no matter how much even over the cgt allowance limit?
Yes.