ISA's now been taxed over £20,000

gesdt50

Hi, is it the case now that the government is starting taxing ISA's over 20,000 in some circumstances if there are moved from one ISA provider to another, that is the interest will not be protected from tax relief?

Thanks for any help

Isthisforreal99

Where did you hear such nonsense?

ToastLady

Not true, as long as the interest is still held within the ISA wrapper, it is tax free, even if transferred to another provider. If it's taken out and put in a normal savings account, it may be subject to tax, depending on individual circumstances.

Ayr_Rage

Time to fire up ITVX and watch the MLMS from 1915 last night.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81918121#Comment_81918121

Why?

Eldi_Dos

https://forums.moneysavingexpert.com/discussion/comment/81918165#Comment_81918165

To see the nice graphics and hear a bit of staccato presenting.

jimjames

https://forums.moneysavingexpert.com/discussion/6659072/isa-039-s-now-been-taxed-over-20-000

Absolutely not the case. £20k is only the annual limit some people have over £1million in ISAs and it's all tax free.

clairec666

https://forums.moneysavingexpert.com/discussion/6659072/isa-039-s-now-been-taxed-over-20-000

No, there's not been any change in rules that would have this effect

wmb194

https://forums.moneysavingexpert.com/discussion/6659072/isa-039-s-now-been-taxed-over-20-000

Are you confusing the proposed new rules for 2027/28 from 06/04/27 on taxing interest on cash in S&S Isas with what you're suggesting?

gesdt50

Thanks for the advice

Aretnap

Depends on how you move them.

If you use the correct ISA transfer process where the money moves directly from Old ISA to New ISA there is no limit to how much you can transfer and retain the money's ISA status.

However if you withdraw more than £20,000 from Old ISA into your current account, then try to pay it into New ISA, you will ruin into problems as this counts as a new ISA subscription and you are restricted to paying £20,000 per year into New ISA. Some people get caught out by this and end up with tax penalties, or money stuck outside the ISA wrapper earning taxable interest.

Possibly you have heard a garbled version of a warning that you need to use the correct ISA transfer procedure rather than just withdrawing it and paying it into the new ISA.