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

badmemory

Tax free until it earns its own interest in that non-ISA account & then that interesst becomes taxable.

ColdIron

audzatcorodale44 said:

Thank you for your responses to be clear any interest withdrawn from an isa remains tax free even if it’s moved to another type of account. 

No. Read the post above yours especially the last bit

rallycurve said:
However this withdrawn money won't be generating tax free interest anymore as it won't be in an ISA

clairec666

Simple example:
If you have £20000 in an ISA earning 5% interest you will get £1000. It will NOT be taxed, whether or not you withdraw it.
However if you do withdraw the interest, put it in a non-ISA account at 5% then you will gain £50, but it is no longer in an ISA so you could be taxed in it.

Dazed_and_C0nfused

clairec666 said:

Simple example:
If you have £20000 in an ISA earning 5% interest you will get £1000. It will NOT be taxed, whether or not you withdraw it.
However if you do withdraw the interest, put it in a non-ISA account at 5% then you will gain £50, but it is no longer in an ISA so you could be taxed in it.

On the £50, not the £1,000.

clairec666

Dazed_and_C0nfused said:

clairec666 said:

Simple example:
If you have £20000 in an ISA earning 5% interest you will get £1000. It will NOT be taxed, whether or not you withdraw it.
However if you do withdraw the interest, put it in a non-ISA account at 5% then you will gain £50, but it is no longer in an ISA so you could be taxed in it.

On the £50, not the £1,000.

Yes, that's what I meant - thanks for clarifying