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ISA stocks and shares


bmont

Question

I’ve opened an ISA trading account and I have a few question before deposit funds.

 

1.Is there any margin call in this account or can a trade be closed or reduced if a trade declines? If not does the value just drop proportionality?  

 

2. Can profits be withdrawn on an open trade?

 

3. If the maximum of £20k is deposited and u make profit can more than £20k be traded on further trades and if so is the sum more than £20k taxable if profits are made?

 

4. When opening the ISA account I had to open a share dealing account, what was the reason for this and do I have to use it? 

Thanks in advance 

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On 23/08/2020 at 17:11, bmont said:

I’ve opened an ISA trading account and I have a few question before deposit funds.

 

1.Is there any margin call in this account or can a trade be closed or reduced if a trade declines? If not does the value just drop proportionality?  

 

2. Can profits be withdrawn on an open trade?

 

3. If the maximum of £20k is deposited and u make profit can more than £20k be traded on further trades and if so is the sum more than £20k taxable if profits are made?

 

4. When opening the ISA account I had to open a share dealing account, what was the reason for this and do I have to use it? 

Thanks in advance 

Hey @bmont

1. With an ISA account there's not a margin call as you're buying the actual shares. What you should be aware of is any fees that may impact you balance. For example there can be a quarterly £24 fee. You must make sure there's enough funds on the account to pay this. So it doesn't effect your ISA allowance you can have the money on your share dealing account and we can take it from there. 

2. Profits cannot be withdrawn from an open trade. You have to sell you stock and wait for the funds to settle before you can withdraw them. 

3. If you make profit on stocks which means you exceed £20K this is not an issue. With regards to tax we're unable to comment you would have to reach out to an independent tax advisor.  

4. You do not have to use your share dealing account if you don't want to. The share dealing account is non-leveraged. Clients open with this account and if ISA eligible will be shown the option to add an ISA. 

All the best 

 

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