55 on March 5th 2025

af1963

A_T said:

af1963 said:

If the tax deduction is a problem for you, you could consider ( as well as the UFPLS withdrawal) making an additional withdrawal of enough extra tax free cash to make sure you can fully fund the 24/5 ISA.  Then when you get the tax refund, use that to live on, or put it in your 25/6 ISA if you don't need it for that. 

I'll be using FAD not UFPLS

I don't think that changes the reasoning.    

So my suggestion is:  use FAD to take a taxable sum of 12570, plus TFC of 7430, to give you £20k to put in this year's ISA, plus also withdraw enough extra TFC to cover the tax which might temporarily be withheld (20% ?), so you have a full 20k available for the ISA   Scale down these numbers if you have less than 20K ISA allowance remaining.

That would be an extra lump of TFC of about 2500.  So you'd be taking about £10k TFC in total, which would crystallise £30k, from which you'd draw down the taxable 12570 and pay about 2500 in (temporary) tax.  The rest would sit in the crystallised pot until you need it. ( Or take another 12570 out when the new tax year starts, and move it to a 2025/6 ISA along with this year's tax refund when it arrives... )