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    • C_Mababejive
    • By C_Mababejive 10th Jun 17, 9:13 PM
    • 10,158Posts
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    C_Mababejive
    Making withdrawls from S&S ISA..?
    • #1
    • 10th Jun 17, 9:13 PM
    Making withdrawls from S&S ISA..? 10th Jun 17 at 9:13 PM
    A friend has asked me about this...

    If a person has a load of shares within an S&S ISA envelope and those shares generate a dividend of say £5000 pa,once that money arrives in the account can some or all of the notional £5k be withdrawn and if so,are there any issues to be aware of? tnx
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
Page 1
    • dunstonh
    • By dunstonh 10th Jun 17, 10:04 PM
    • 88,371 Posts
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    dunstonh
    • #2
    • 10th Jun 17, 10:04 PM
    • #2
    • 10th Jun 17, 10:04 PM
    If a person has a load of shares within an S&S ISA envelope and those shares generate a dividend of say £5000 pa,once that money arrives in the account can some or all of the notional £5k be withdrawn and if so,are there any issues to be aware of? tnx
    Its an ISA. There is no £5k allowance.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • jimjames
    • By jimjames 10th Jun 17, 11:11 PM
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    jimjames
    • #3
    • 10th Jun 17, 11:11 PM
    • #3
    • 10th Jun 17, 11:11 PM
    And you can withdraw any amounts from an ISA with no tax to pay
    Remember the saying: if it looks too good to be true it almost certainly is.
    • C_Mababejive
    • By C_Mababejive 11th Jun 17, 11:42 AM
    • 10,158 Posts
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    C_Mababejive
    • #4
    • 11th Jun 17, 11:42 AM
    • #4
    • 11th Jun 17, 11:42 AM
    Thanks all,,so next question from my friend is..in the tax year if he takes his already taxed work related pension, his state pension and then withdraws a sum from his ISA to bolster his annual income, once that money has exited the ISA enveloped by virtue of withdrawl, is it declareable as "income" and therefore potentially taxable? tnx
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
    • dunstonh
    • By dunstonh 11th Jun 17, 12:13 PM
    • 88,371 Posts
    • 53,586 Thanks
    dunstonh
    • #5
    • 11th Jun 17, 12:13 PM
    • #5
    • 11th Jun 17, 12:13 PM
    Thanks all,,so next question from my friend is..in the tax year if he takes his already taxed work related pension, his state pension and then withdraws a sum from his ISA to bolster his annual income, once that money has exited the ISA enveloped by virtue of withdrawl, is it declareable as "income" and therefore potentially taxable? tnx
    Originally posted by C_Mababejive
    ISAs are tax free. They do not exist for tax purposes. Any withdrawal, whether natural income, regular withdrawal or ad-hoc withdrawal creates no tax liability. Tax free means tax free.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • badger09
    • By badger09 11th Jun 17, 12:27 PM
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    badger09
    • #6
    • 11th Jun 17, 12:27 PM
    • #6
    • 11th Jun 17, 12:27 PM
    The lump sum withdrawn will never be taxable income - because it isn't income

    If it is put into an interest bearing account, the interest generated would be taxable income.
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