Hi all, I’m fairly new to this game and when I started putting more than pocket change into FT I invested in an ISA account.
I’ve now got a growing portfolio and I wanted to learn more about how this works.
I understand that there’s a limit of £20,000 per ISA per year.
So, here’s a couple of questions:
- If I put say, £3,000 into my ISA, and that magically grew into £28,000 in investments, does that mean I am not able to sell more than £20,000 worth of my holdings in one go? Would I have to sell £20k’s worth, then withdraw that from my ISA before selling more holdings?
- If I can sell more than £20,000 worth of holdings in one go, does that just mean I pay tax on anything over that limit?
- If I then withdraw my funds from my ISA to my standard bank account, will I then need to pay income tax etc on it? If so, how does that work, and what is the point in the ISA if you’re having to pay tax on it eventually anyway?
Thanks for entertaining the questions of a new investor.