Confused

Frogletina

scottyrom76 said:

There's no limit to the withdrawal amount, and everything withdrawn can be replaced within the same tax year (plus any unused current year allowance).

But only with the same provider I read......is this correct ?

 Yes, if you flexibly withdraw, it can only be returned to the same provider. 

jimjames

scottyrom76 said:

Thanks all, much appreciated, Didn't think the taxman would go for that but I read it several times and couldn't see any benefit for my particular circumstances unless this apparent loophole wasn't taxable. 

Probably when the article was written there were current accounts paying 1.5% and others similar yet ISAs were under 1% so it might have been worthwhile. When ISAs pay 3% or more and savings accounts the same or less it's no longer such a good idea especially when the rise in rates means that tax becomes more of an issue. Reaching the £1000 tax free limit is a bit more likely at 3% than 0.5%!

35har1old

fwor said:

scottyrom76 said:

Before 5 April the following year just put it back in the ISA to keep your tax protection.

Taking cash out of an ISA is a one-way process. You can only put in as much as remains of your £20k/year allowance. You cannot put cash "back into an ISA".

On less its a flexible ISA

35har1old

eskbanker said:

fwor said:

As said, the MSE wording is a bit misleading, because the money you take out is (of course) subject to tax all of the time that it's outside the ISA - so if you contrive to have it within the ISA for (say) 2 days of the year, it is subject to tax on any interest that it earns for the remaining 363 days.

To be fair, it does say "remember the personal savings allowance means you can earn up to £1,000 in interest in non-ISA savings accounts each financial year tax-free".

If you're a non-taxpayer – that is you have less than £12,570 income per year, you may be able to earn as much as £18,570 in savings interest tax-free. But it depends on how much income you do have, whether from a pension, or from working. Our Tax-free savings guide has full information.