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Withdrawing cash from ISA.

Marchmartian
Posts: 3 Newbie

I am thinking of withdrawing cash from my ISA. Would it be better to surrender or withdraw most of the money?
Also if I take £15,000 out of it does it go against your personal allowance? I am getting conflicting answers from my ISA provider and independent advisors.
Thanks
Also if I take £15,000 out of it does it go against your personal allowance? I am getting conflicting answers from my ISA provider and independent advisors.
Thanks
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Comments
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Marchmartian said:I am thinking of withdrawing cash from my ISA. Would it be better to surrender or withdraw most of the money?
Also if I take £15,000 out of it does it go against your personal allowance? I am getting conflicting answers from my ISA provider and independent advisors.
Thanks
The ISA money is not earned or pension income, therefore it does not go against the personal allowance. Any interest earned in an ISA is tax free.
Edit: do you mean personal savings allowance? If so, ISA interest is tax free and does not count towards the personal savings allowance.'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.0 -
I think they are just trying to get out of transfering the money by saying that my wages, plus the £15000 will put me over £50000 (higher tax band I guess) so I will be liable to pay tax on the £15000. Would it be easier to not close the ISA and leave some money in it?0
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Marchmartian said:I think they are just trying to get out of transfering the money by saying that my wages, plus the £15000 will put me over £50000 (higher tax band I guess) so I will be liable to pay tax on the £15000. Would it be easier to not close the ISA and leave some money in it?
What are you actually trying to achieve? If you want to access money from your ISA to spend, or to save elsewhere, then go ahead, there's no need to overthink it and come up with complications arising from misunderstandings!0 -
Marchmartian said:I think they are just trying to get out of transfering the money by saying that my wages, plus the £15000 will put me over £50000 (higher tax band I guess) so I will be liable to pay tax on the £15000. Would it be easier to not close the ISA and leave some money in it?'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.0
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The company I have the ISA with. Thank you for the input that has made it very clear that they are trying to scare me into keeping the account. Again thank you.0
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Marchmartian said:The company I have the ISA with. Thank you for the input that has made it very clear that they are trying to scare me into keeping the account. Again thank you.
In other words, if you withdraw £15K from your ISA to your non-ISA account, there's no tax to pay on that £15K as such, but if, for the sake of argument, you earned £750 interest at 5% on that pot over the next year, then that £750 would be taxable income (albeit still unlikely to result in any tax being payable as it would be covered by your personal savings allowance, unless that was already spoken for with other savings).0
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