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Withdrawing from a previous tax year isa

If I have two ISA accounts with two different banks. (Santander 1.6% and Nationwide 2.5%)
Santander has the isa money for tax year 2013-14 and the years before it, and Nationwide will have the isa allowance for 2014-15, but only accepts new money.

As I'm very unlikely to reach the allowance for 2014-15, I'm thinking of withdrawing money out of the Santander account to put into the Nationwide account (so I reach my maximum).

* If I withdraw money out of a previous tax year isa, does this reduce my my isa allowance for year 2014-15?
Save in 2013: #166: 9,122.51/[STRIKE]5,000[/STRIKE] 10,000
Interest earned in 2014: £257.61 20/04/14

Comments

  • ColdIron
    ColdIron Posts: 10,327 Forumite
    Part of the Furniture 10,000 Posts Hung up my suit! Name Dropper
    No it doesn't
  • jimjames
    jimjames Posts: 19,244 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 6 April 2014 at 9:39PM

    * If I withdraw money out of a previous tax year isa, does this reduce my my isa allowance for year 2014-15?

    Withdrawing previous years money has no effect on any current or future allowances.

    Paying it back in again will do.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • RoxRoxBling
    RoxRoxBling Posts: 475 Forumite
    Thank you for your replies, Not sure if I was clear, but I intend to take the money out of the santander account this tax year. Not sure if this makes a difference?
    Save in 2013: #166: 9,122.51/[STRIKE]5,000[/STRIKE] 10,000
    Interest earned in 2014: £257.61 20/04/14
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Withdrawals have no bearing on the annual ISA allowance, as has already been commented.

    The allowance defines how much you can deposit in a given year.
  • RoxRoxBling
    RoxRoxBling Posts: 475 Forumite
    ok got it. thnks
    Save in 2013: #166: 9,122.51/[STRIKE]5,000[/STRIKE] 10,000
    Interest earned in 2014: £257.61 20/04/14
This discussion has been closed.
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