S&S ISA Questions

A question about : S&S ISA Questions

Hello all, I've got a few questions about opening an S&S ISA and after reading around I've not seem to come up with any answers. Any help would be appreciated (these may seem like primitive questions, go easy on me I'm new).

1) Do you need to keep opening a new S&S ISA every year or can you continue to top up the same single account with the full 15k or so allowance for each year?

2) Lets imagine for the sake of simplicity that you invest 15k on a FTSE 100 tracker fund for 5 years. Seeing as you pay no capital gains tax in an ISA, does that mean that when you finally withdraw your money from the fund that you still will not pay any capital gains tax?

3) With regards to tracker funds, say you invest your entire ISA allowance of 15k in a single fund (for the sake of simplicity again), if you want to invest an additional 1k into the same fund where do you do it? For example, I see iWeb mentioned a lot around here as a recommendation for ISAs, would you simply purchase it through that via a non-ISA account? And how would you monitor your 1k's value over time?

Thanks,
Dean

Best answers:

• 1 - you don't need to open a new one every year, and most people don't, but you can if you want to (watch the charges)
  2 - as long as your money is in an ISA, it stays tax free (under present legislation). Once you take it out, any further interest or gain you may will be taxable. As an aside, investing all your money in a single FTSE tracker is extremely risky - you need more diversification
  3 - if you mean you want to invest Ј16K in a fund in the same financial year: you can use the same provider for the wrapped (ISA) and unwrapped investment if you want to, and most people probably would, but you don't have to. Your provider will provide you with statements which you can use to keep track of your investments but it's always a good idea to have your own spreadsheet. For tax purposes, it's crucially important to keep detailed records of your unwrapped investments.
• Just to be clear, any capital gain or loss you make on disposal/withdrawl from your ISA isn't counted when determining your capital gain or loss for the year of the disposal.
  If you make a gain above the annual exemption amount there is no tax to pay.
  If you make a loss, then this cannot be carried forward to offset future capital gains on unwrapped investments.
• Also i've just noticed on iWeb that it says:
  'Please note that when opening an IWeb ISA, a Share Dealing Account will be automatically opened for you. We will take the fee 1 working day after opening your account which means you need to fund your Share Dealing Account with Ј25. The fee will not automatically be debited from your nominated bank account. If your Share Dealing Account balance is Ј0 when the fee is taken, your account will show a negative balance.'
  Does this mean in essence you need to pay Ј50 right off the bat?
• No, a single Ј25.
• Pay Ј25 into your Share Dealing Account for the fee, and the full Ј15,000 - or whatever you want to invest - into the ISA.
  That way the fee doesn't effectively reduce your ISA allowance.
• can,t find an Q/A so Ihave a UK bank a/c, a UK address, a UK tax return,a UK rented out property but am NOT resident.
  Can I buy an isa? or any other savings ?
• Sounds a slightly complicated setup - you should ask the HMRC as they will be the ones who decide whether you are entitled or not.
  Also check the tax laws of the country you live in.