Trading 212 withdrawing interest

WeeJockyMcPloppy

Hi Folks.

I'm a newbie to this one. I have 3 x years of Trading 212 ISAs, the 3rd being current 2025/6. I want to withdraw the floating £2,000 interest, but £2,000 comes off my 2025/6 allowance (and the interest still shows as interest). This generates lots of questions, of course.

Qs:

Does that mean I'm losing £2,000 tax free allowance?

When I tip over into the new tax year, will £18,000 + £2,000(interest) = £20,000 be locked in for the 2025/6 year, or will it be locked in at £18,000?

InvesterJones

The £20k limit is for new contributions. Previous years values (contributions + growth) don't count.

sausage_time

You can pay in £20,000 of new money into ISAs each financial year. Taking interest or capital from this or previous years will not impact that.

QrizB

It's all just money on your account. Capital, interest, it's just money.

If you take £2000 out of a flexible ISA you can put £2000 back in during the same tax year.

jimjames

Does that mean I'm losing £2,000 tax free allowance?

Yes you are. If you leave it inside the ISA then you retain that allowance. For a flexible ISA you can add it back before the end of the tax year but beyond that it's lost.

Jordan72

Yes you can take out cash from your T212 flexible ISA and - as you long as you pay it back within the same tax year you took it out (i.e. before April 5th) you retain your ISA status. You could take it right out again after April 6th. I took out £17K and put it into a better paying non-ISA account and will transfer it back into the T212 ISA within the next month or so.

This is only worthwhile to me as I can benefit from the SRB (Savings rate band) which boosts my tax free savings rate up to £6K per annum. I have done similar with my IG Group S&S ISA account cash balance, which I will also return into it's ISA wrapper before 5th April.