Hey guys I have a question hope you’ll understand it. April to April you can only deposit no more than 20k per year right? Now let’s say for arguments sake you put 20k in on the may, so you’ve reached your limit for the year. What about dividends? Say I received 1k in dividends then my account would say 21k. Is this allowed?? Probably a silly question but it’s been on my mind.
Yes that’s allowed. All capital gains and dividends remain tax free whilst you hold them within your ISA. As long as you don’t put in more than 20k per year you’re fine. You could say put in 20k and it double and you make a further 5k from dividends you’d be fine!
That’s exactly why ISA’s are an absolute gem for long term investors.