ISA - Reporting/Paying Tax

Nowler

Experienced member
1,431 202
Hi all,

How tedious is it to report income from an ISA many years later?

As in, if I am buying and selling from within my ISA for years, with no money coming out, but then decided 10 years later to take money out, do I simply just report that I earned X amount from a Stocks and Shares ISA this tax year?

Or do I have to report when I bought and sold each one, and what profit was made from each trasaction?

I literally have zero experience in reporting tax! lol
My income is taxed at source from my employer
 
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MasterOfCoin

Established member
947 371
Hi all,

How tedious is it to report income from an ISA many years later?

As in, if I am buying and selling from within my ISA for years, with no money coming out, but then decided 10 years later to take money out, do I simply just report that I earned X amount from a Stocks and Shares ISA this tax year?

Or do I have to report when I bought and sold each one, and what profit was made from each trasaction?

I literally have zero experience in reporting tax! lol
My income is taxed at source from my employer
As long as you've not breached any ISA funding limits, and not breached more than the 1 Million lifetime limit after gains, there's nothing at all to report.

ISA's are free of all Income / Capital Gains Taxes within those criteria.

Rest assured, your ISA provider reports every penny to the Tax Authority annually anyway, it's a condition of their continuing to provide the product, but there's no requirement on holders to report gains held in ISA's.

:D
 
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Nowler

Experienced member
1,431 202
As long as you've not breached any ISA funding limits, and not breached more than the 1 Million lifetime limit after gains, there's nothing at all to report.

ISA's are free of all Income / Capital Gains Taxes within those criteria.

Rest assured, your ISA provider reports every penny to the Tax Authority annually anyway, it's a condition of their continuing to provide the product, but there's no requirement on holders to report gains held in ISA's.

:D

But I do have to pay Income/CGT when I take it out of the ISA.

So do I merely report the nominal amount withdrawn from the ISA?
 

BigDeal

Member
85 36
No, if the income and or profits were generated inside the ISA no declaration or reporting of such is required
 

MasterOfCoin

Established member
947 371
But I do have to pay Income/CGT when I take it out of the ISA.

So do I merely report the nominal amount withdrawn from the ISA?
Nope.

There is no reporting requirement for withdrawals and no Tax to pay.

Take out and spend gains tax free.

What you can't do, is recycle more than the annual limit back into the ISA, unless it's a 'Flexible ISA'.

That'll breach the conditions and leave you liable for a Tax Bill !

o_O
 

Nowler

Experienced member
1,431 202
No, if the income and or profits were generated inside the ISA no declaration or reporting of such is required
Nope.

There is no reporting requirement for withdrawals and no Tax to pay.

Take out and spend gains tax free.

What you can't do, is recycle more than the annual limit back into the ISA, unless it's a 'Flexible ISA'.

That'll breach the conditions and leave you liable for a Tax Bill !

o_O


WHAAAAAT!
You're joking me!?!

I loved ISA's when I believed it was merely a tax deferral wrapper - i.e. that you don't pay tax until it leaves the ISA.
Now I'm being told that the only tax I pay on money I take out of my Stocks & Shares ISA is the tax on the items I am purchasing with that money...

Someone hold me up!
 
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MasterOfCoin

Established member
947 371
Yup.

It's a Tax Avoidance Wrapper endorsed by the State.

Enjoy, as such things are rare, - usually they involve giving your money to the State for a poorer but safe return.


:cool:
 
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Nowler

Experienced member
1,431 202
I had been factoring in like ... 40% tax into my ISA future.

Though at the rate that money is being printed, ISA's might very well be taxed when you take the money out, lol
 
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