Sorry for this very basic question, but i am a newbie.
So I have an ISA with freetrade. And I know only upto a max of £20000 can be put in to it in 1 year.
for example, if i deposit £300 and i buy an etf for £300, so now my limit is down to £19,700. But if I sold that ETF for £400, and therefore that £400 was paid into my account. What would the remaining allowable deposit be for my ISA?

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If you sell for a profit you have not deposited more in your account.

You can put in £20,000 a year (currently) - whatever happens to the money once it is in your account is irrelevant.

You could still put £19,700 in.

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It is only cash that comes from outside to inside the isa

once it is in the isa - you can buy sell hold do whatever you want to it (except withdraw from isa, though that will be tax free)

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you cant withdraw from the ISA??

Thank you Richard. Just one more thing…can the same be said for etfs which pay dividends into the ISA?. Those dividends being paid in dont subtract from the remaining ISA deposit allowance??

What do you mean? Yes you can

It’s only money that comes from the outside to inside.

Dividends come from inside, so aren’t included in your 20000

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*except withdraw from isa, though that will be tax free)
I was just refering to this comment from above

Just one more ISA question, I promise!!!
I know I can only open 1 in any one tax year, but if I had opened a few in different tax years so now i have lets say 3 ISA accounts, could i use all 3 in one tax year?

You can withdraw from an isa

You can keep all 3 but you can only add new money/capital into one S&S ISA in any tax year.

Your questions are exactly the kind I was asking when first starting out so based on my own experience let me try to answer in a way that would have satisfied all of my questions:

  • In 2018 you invested £20k in a Vanguard ISA
  • In 2019 you invested £20k in a Freetrade ISA

For your 2020 allowance you can ONLY invest in either your Freetrade OR Vanguard ISA not both.
The wording here is important. You can still manipulate either ISA. Let’s say you decide to invest into your Freetrade ISA for 2020. You cannot send money from your bank account to the Vanguard ISA in 2020 anymore BUT you can sell shares in your Vanguard ISA and buy new ones within it as long as you don’t withdraw the money in between. Same applies to dividends and gains. If your Vanguard is now worth £22k you can literally sell all stocks and hold £22k in cash in that account until the next pandemic hits and you decide to turn that cash into stocks again. Same applies to dividends that were paid, you can invest them into either account at any point. The only thing you need to do is to treat the accounts as closed systems. As long as you don’t pay into two accounts in the same year it does not matter what you do with the money/ stocks inside it. What happens in the account stays in the account so to speak. Hope this helps.


Just re-checking for my own sanity, but from what I understand, are you allowed to have your Shares ISA and a cash ISA (eg for savings) in same tax year? I was under the impression you could but the 20k amount had to be shared between both ISA’s as long as you didnt max them both out or go over the 20k limit in total?

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Yes that’s correct, I actually always max out my LISA of £4K per year and then max out my Stocks and Shares ISA at £16k per year. You can mix and match different types of ISAs so to speak but you cannot pay into two ISAs of the same type in the same tax year.

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Perfect, I had a feeling that was the case (and yea I do something similar) thanks!

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Thank You very much Koni…much appreciated. And just for clarity, on my freetrade app I have a basic account and an investment isa… The basic account is also an ISA (a cash ISA)??
And the total amount I can put into the 2 combined can not be more than the 20K limit?

The basic account is not an ISA so the money held in there does not contribute to your ISA allowance and is subject to Capital Gains Tax if you make profits of more than £12k in the tax year. I basically use the Basic account only once I have maxed out the Stocks and Shares ISA, personal preference and not advice of course:)

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