If I add another £20k to my existing ISA account do I not pay tax on £40k ? Il

audzatcorodale44

I am reading conflicting information about this, I am wondering if I keep adding to my existing isa will I not need to pay tax on any of this money? It seems too good to be true .!

XzavierWalnut

Presuming this is a cash ISA or stocks and shares one, you do not pay any tax on the interest. Only thing to remember is you can only put in £20K each tax year. I don't know anything about other types of ISA's.

Isthisforreal99

Where is this conflicting information? You can add £20k of 'new' money each tax year, it's as simple as that.

GrumpyDil

You can put in 20k of new money per tax year across all your ISAs, although if you have a lifetime ISA that specific one is limited to 4k per year.

Albermarle

audzatcorodale44 said:

I am reading conflicting information about this, I am wondering if I keep adding to my existing isa will I not need to pay tax on any of this money? It seems too good to be true .!

If you read through this forum, you will not see such conflicting information, so it is a good way to keep up to speed with ISA's.

Ayr_Rage

ISAs and Tax are mutually exclusive, thankfully.

I've added to mine every year since they came into being, today's S&S ISA valuation £930,528.60

Ch1ll1Phlakes

audzatcorodale44 said:

I am reading conflicting information about this, I am wondering if I keep adding to my existing isa will I not need to pay tax on any of this money? It seems too good to be true .!

Don't know where your conflicting information is from but if you have added £20k to your ISA in the 24/25 tax-year you will be able to add a further £20k to it this tax-year (25/26) as long as your specific account allows it. For example, most fixed rate ISAs won't allow further deposits.

Also, in case you weren't aware you can open more than one ISA per tax-year as per new ISA rules.

eskbanker

Ch1ll1Phlakes said:

audzatcorodale44 said:

I am reading conflicting information about this, I am wondering if I keep adding to my existing isa will I not need to pay tax on any of this money? It seems too good to be true .!

Don't know where your conflicting information is from but if you have added £20k to your ISA in the 24/25 tax-year you will be able to add a further £20k to it this tax-year (25/26) as long as your specific account allows it. For example, most fixed rate ISAs won't allow further deposits.

Also, in case you weren't aware you can open more than one ISA per tax-year as per new ISA rules.

....but subject to an aggregate annual contribution limit of £20K, not per account (for OP's benefit, you'll know that).

Yorkie1

audzatcorodale44 said:

I am reading conflicting information about this, I am wondering if I keep adding to my existing isa will I not need to pay tax on any of this money? It seems too good to be true .!

Yes that's right.

However much you have in an ISA (or more than one), any interest earned on it is tax free as long as you keep the interest within the ISA rather than withdrawing it to another account.

rallycurve

Yorkie1 said:

audzatcorodale44 said:

I am reading conflicting information about this, I am wondering if I keep adding to my existing isa will I not need to pay tax on any of this money? It seems too good to be true .!

Yes that's right.

However much you have in an ISA (or more than one), any interest earned on it is tax free as long as you keep the interest within the ISA rather than withdrawing it to another account.

You don't have to keep the interest within the ISA. It is still tax free even if you withdraw the interest to another account.
However this withdrawn money won't be generating tax free interest anymore as it won't be in an ISA.

audzatcorodale44

Thank you for your responses to be clear any interest withdrawn from an isa remains tax free even if it’s moved to another type of account.