Transferring money from a cash ISA

ForesDP

Hi guys
Please excuse my ignorance, but I have a question about moving money out of an ISA and investing it in a notice account. 
My wife has about £50k in a cash ISA, but because it's interest rate is currently so low we would like to move it to a higher paying 90 day notice or a fixed savings account (not another ISA). Will this present us with any problems? Will we have to pay tax on the withdrawn money?
We have transferred from ISA to ISA before, but because we will have to withdraw the money out of the ISA into our current account and then transfer into the notice/fixed account it makes us a little nervous. 
Apologies if this is a stupid question.
I hope someone can help
Many thanks in advance

Costabit

No tax to pay whatsoever.
All money inside an ISA is always protected from tax , which is a decent reason to keep it inside the ISA.
But if you certain that you want it out, go for it , it’s all yours.
There is a very slight chance that the provider has exit charges though

george4064

You can calculate what your expected tax will be here: https://www.gov.uk/apply-tax-free-interest-on-savings

Tax allowances depend if the individual (your wife) is earning an income, so check carefully with your wife’s details.

colsten

Your wife does not have to pay any tax at the point of taking the money out of the ISA.

Any subsequent interest earned in your wife’s accoun(s) outside the ISA will count as taxable income. Whether any tax would actually become due depends on your wife’s tax band - the first £1,000 interest per annum are tax free for BR tax payers; £500 for HR tax payers; £0 for addtional rate. 

Same would apply if the interest was earned in non-ISA accounts in anyone else’s name.

macman

No tax to pay, but you will lose the tax-free status of that £50K forever.

Eco_Miser

macman said:

No tax to pay, but you will lose the tax-free status of that £50K forever.

Unless the OP's wife has unused ISA allowance at the time she wishes to return it to an ISA.

xylophone

If she currently has a flexible ISA, she could move cash from the ISA to a non ISA account, hold in the non ISA account, move it back before the tax year ends and then out again and so on.


Has she checked all savings rates?