Share ISA trading and tax?

bigtime

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Hi everyone :)

I am a full time trader currently trading within my share ISA.

I have grown £10k into £50k in the last 12 months day trading small cap companies listed on LSE, on average I buy and sell one stock a day.

I do not plan to withdraw money into my bank account as I want to build my ISA account substantially, I have however taken a few £1000 out to pay for a few items here and there.

I am unsure on the situation regarding tax is, I know ISAs are tax exempt from CGT and income but as I have built it quite alot I do not want HMRC getting funny.

So I guess my question is do I have to pay any tax if I continue growing my ISA account exponentially? and for hearsay do I even have to pay tax if I started withdrawing monthly amounts to my bank account?

It is all very confusing to me.

Thanks for any help (y)
 
. . . I have grown £10k into £50k in the last 12 months day trading small cap companies listed on LSE, on average I buy and sell one stock a day. . .
Hi bigtime,
Welcome to T2W.

Wow, I'm impressed - that's one hell of a gain - well done! Can't answer your question I'm afraid as I know nowt about tax but, that said, I thought the whole point about ISAs is their tax free status? I'd have thought that your ISA provider would be able to provide a clear and comprehensive answer. Failing that, any accountant worth his/her salt will be able to advise you or, better still, get it from the horse's mouth and phone HMRC!
Tim.
 
Thank you

Well it took me 2-3 years full time to learn, paper trading and a few small live accounts blown up. Has been well worth it though.

Yes I have been doing a bit of digging and am getting mixed responses regarding the tax situation so would be good to hear from traders or accountants or just people who have an idea.

Anyone?

:p
 
Thank you

Well it took me 2-3 years full time to learn, paper trading and a few small live accounts blown up. Has been well worth it though.

Yes I have been doing a bit of digging and am getting mixed responses regarding the tax situation so would be good to hear from traders or accountants or just people who have an idea.

Anyone?

:p

there should be no mix-up
any investments within your ISA is tax free
 
Ok thanks for the reply :)

Would I still need to fill in yearly tax return or something along those lines? As trading is now my full time job.

if its all within your ISA, then its exempt from tax and as such it doesn't need to go through your self assessment.
 
ok thank you

that is great news :smart:

Hi Bigtime,

I am UK based and am interested in short-term day trading of small-midcap stocks and OTCs - and am wondering whether, from a legal UK tax mitigation perspective, it is better to trade through "opening a spread betting account" or "use my UK ISA portfolio" (if possible)?

In either case, what Broker (UK or foreign) would be best to use for anything up to 300 trades a month?

Any help/insight would be greatly appreciated.

Many thanks in advance,
 
Hi everyone :)

I am a full time trader currently trading within my share ISA.

I have grown £10k into £50k in the last 12 months day trading small cap companies listed on LSE, on average I buy and sell one stock a day.

I do not plan to withdraw money into my bank account as I want to build my ISA account substantially, I have however taken a few £1000 out to pay for a few items here and there.

I am unsure on the situation regarding tax is, I know ISAs are tax exempt from CGT and income but as I have built it quite alot I do not want HMRC getting funny.

So I guess my question is do I have to pay any tax if I continue growing my ISA account exponentially? and for hearsay do I even have to pay tax if I started withdrawing monthly amounts to my bank account?

It is all very confusing to me.

Thanks for any help (y)
Wow. That is pretty impressive. Have you been able to maintain that kind of returns since then till now?
 
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