Self employed taxes on trading in an isa?

[Mark84]

Hi everyone, I'm very puzzled, if you trade as a job but do so in an isa, doesn't that mean you're self employed but totally free of tax? What numbers would you have to submit for self assessment?
Thanks so much for any help, great to discover this forum!

 

[Riddler]

Hi everyone, I'm very puzzled, if you trade as a job but do so in an isa, doesn't that mean you're self employed but totally free of tax? What numbers would you have to submit for self assessment?
Thanks so much for any help, great to discover this forum!

No, it isn't employment and thankfully there is no limit set by HMRC to the amount of trading you can do in an ISA (only the annual injection of new capital limit applies).

There's no self-assessment required as CGT and Dividend Taxes do not apply but Labour just delivered their first budget in 15 years and I'm not hearing good things, I will sit down and go through it tomorrow as I was busy when it was announced but I wouldn't be surprised if they've gone and slashed the ISA limit.

 

[Mark84]

Thanks for the reply. So It isn't (self) employment? It's classed like professional gambling? The budget was kinder than i expected.

 

[Trader333]

All "trading" within a stock and shares ISA is exempt from tax. However, you are limited in how much cash can be put in each year which is currently £20K. I have not heard of anyone who has been able to successfully day-trade inside an ISA so it is dependent on what type of trading you are wanting to do.