ISA question

Chad Seven

Active member
207 13
Not really trading related, but related to money which everybody here is interested in and knowledgeable about.

Consider a scenario where £30,000 is deposited into an ISA and invested in financial assets The value of the ISA then increases by £20,000 to £50,000 via capital gains.

In the current tax year the initial sum of £30,000 and a further £12,500 of capital gains can be withdrawn from the ISA without incurring any tax. The following tax year the remaining £7,500 can be withdrawn so that the entire £50,000 has been withdrawn without incurring any tax.

Is my understanding correct?
 

mpups

Experienced member
1,024 143
Not really trading related, but related to money which everybody here is interested in and knowledgeable about.

Consider a scenario where £30,000 is deposited into an ISA and invested in financial assets The value of the ISA then increases by £20,000 to £50,000 via capital gains.

In the current tax year the initial sum of £30,000 and a further £12,500 of capital gains can be withdrawn from the ISA without incurring any tax. The following tax year the remaining £7,500 can be withdrawn so that the entire £50,000 has been withdrawn without incurring any tax.

Is my understanding correct?
i'm guessing you got the answer to this somewhere else by now i.e. that the ISA funds are simply exempt from capital gains tax (and withdrawals are not relevant)
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock