Isa Withdrawals

RoxRoxBling

With Isa's I know you're not supposed to withdraw any of the money because you will loose the year's allowance etc.
Are there any exceptions to where considering a withdrawal would be ok without affecting the interest/allowance?
TIA

le_loup

... when you need the money?

RoxRoxBling

Do accounts usually calculate interest daily, and the balance at the time of interest not matter?

blueberrypie

RoxRoxBling wrote: »

With Isa's I know you're not supposed to withdraw any of the money because you will loose the year's allowance etc.
Are there any exceptions to where considering a withdrawal would be ok without affecting the interest/allowance?
TIA

Only one - in the case of self-transfer, which is sort of a loophole, but not really. What that means is that you can close an ISA you opened within the current tax year, withdraw all the funds from it, and pay them into a new ISA. But I don't think that's really what you're asking about.

Withdrawing funds will always affect the interest, as you'll stop earning interest on them as soon as they're withdrawn.

le_loup wrote: »

... when you need the money?

OP said "without affecting the interest/allowance" though, so apart from the self-transfer case, the answer is no.

innovate

blueberrypie wrote: »

Only one - in the case of self-transfer, which is sort of a loophole, but not really. What that means is that you can close an ISA you opened within the current tax year, withdraw all the funds from it, and pay them into a new ISA. But I don't think that's really what you're asking about.

Self-transfer? Please elaborate.

innovate

blueberrypie wrote: »

Withdrawing funds will always affect the interest, as you'll stop earning interest on them as soon as they're withdrawn.

Yes you will stop earning interest in your old ISA but you will earn interest in the new one (assuming you request transfer into a new one). In a lot of cases that will be to your advantage

Apologies if I have missed the point in this thread - - - if it is a straight forward withdrawal, of course you won't get any interest any longer.... but that cannot really have been the Q, can it?

blueberrypie

innovate wrote: »

Self-transfer? Please elaborate.

See the second "loophole" described here: http://www.moneywise.co.uk/news/2009-09-25/could-you-cash-isa-loophole

The HMRC guidance is here (section 12.30 to 12.33): http://www.hmrc.gov.uk/isa/isa-guidance-notes.pdf

innovate

blueberrypie wrote: »

See the second "loophole" described here: http://www.moneywise.co.uk/news/2009-09-25/could-you-cash-isa-loophole

The HMRC guidance is here (section 12.30 to 12.33): http://www.hmrc.gov.uk/isa/isa-guidance-notes.pdf

Blimey, I never knew that! Thank you so much, might come in very usefully

Vortigern

RoxRoxBling wrote: »

With Isa's I know you're not supposed to withdraw any of the money because you will loose the year's allowance etc.
Are there any exceptions to where considering a withdrawal would be ok without affecting the interest/allowance?
TIA

You don't "lose the year's allowance", but you do limit the amount you can pay in. If there was no chance of you paying in your full allowance in a given year, you've not really lost much by taking some out.

What the advice should say is; "If you need some cash, and you have the choice of taking it from an ISA or a non-ISA account, you should take it from the non-ISA"

If you need the cash and your only account is an ISA, you've no choice but to take it from the ISA.