ISA

tea_towel

I have saved my house deposit in an ISA and accrued interest last 3 years. When I take it out for the purchase of a house will I be liable for tax. I'm aware the interest gained is tax free but I'm getting confused as it will be taken out and I'm reading that it will loose it's ISA status ....TIA

Ultrasonic

No you will not be taxed on it.

Ayr_Rage

No tax is paid on ISAs when closed or any funds are removed.

PS. There is one O in lose.

eskbanker

tea_towel said:

I'm aware the interest gained is tax free but I'm getting confused as it will be taken out and I'm reading that it will loose it's ISA status

The money does lose its ISA status when withdrawn but the only taxable income would be the interest generated after the money has been moved to a non-ISA account, so if it's just transiting briefly elsewhere then there'll be nothing to speak of....