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IF ISA Offsetting Question
Dave79_2
Posts: 17 Forumite
Hi,
Does anyone know the weighting that IF apply to an ISA when offsetting a £10k loan?
For example, if I have £8k in Savings and 3K in an ISA and choose to offset will I have to pay tax on the interest earned or will the interest go to the ISA?
Conversely if I choose not to offset and have 8k in savings and 3k in an ISA, I then earn 9.9% on all my savings up to £10k, and 5% on anything over. Now would I then get interest at 9.9% on £3k of the ISA, £7k of the savings and 5% on the remaining £1k, or would I get 9.9% on the £8k of savings, £2k of ISA and 5% on the other £1k of the ISA.
I know it will be cheaper in the short term to offset fully, but if I can stash as much as possible into my ISA (ie interest at 9.9% instead of 5%) the more I will have to play with in future.
Hopefully that made sense to someone...
Does anyone know the weighting that IF apply to an ISA when offsetting a £10k loan?
For example, if I have £8k in Savings and 3K in an ISA and choose to offset will I have to pay tax on the interest earned or will the interest go to the ISA?
Conversely if I choose not to offset and have 8k in savings and 3k in an ISA, I then earn 9.9% on all my savings up to £10k, and 5% on anything over. Now would I then get interest at 9.9% on £3k of the ISA, £7k of the savings and 5% on the remaining £1k, or would I get 9.9% on the £8k of savings, £2k of ISA and 5% on the other £1k of the ISA.
I know it will be cheaper in the short term to offset fully, but if I can stash as much as possible into my ISA (ie interest at 9.9% instead of 5%) the more I will have to play with in future.
Hopefully that made sense to someone...
The guys in the locker room kid me about having a small vocabulary.
I don't know why. Mine looks just as big as theirs.
I don't know why. Mine looks just as big as theirs.
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