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Cash ISA for house deposit

RoJo29
RoJo29 Posts: 2 Newbie
Seventh Anniversary
in House buying, renting & selling

I’m currently in the process of looking to buy a house with my partner and we want to use our cash ISAs (easy access etc so no penalties for withdrawals) towards our deposit. Am I right in thinking that we will be able to use the full amounts towards our deposit and there will be no penalties tax wise from HMRC for taking the money from a tax free account to transfer it into our current accounts/solicitors account. We wouldn’t look to move any money until needed/requested so it wouldn’t be sat in any other account for an extended period of time.
Appreciate this may be a somewhat stupid question but house buying process definitely isn’t an easy one!!
Cheers!

Comments

  • silvercar
    silvercar Posts: 51,013 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper

    Is this a HTB ISA or a cash ISA? There is a set procedure to follow to withdraw your HTB ISA to use as a deposit, your solicitor can help with that, for an ordinary cash ISA, you can do what you want.

    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • la531983
    la531983 Posts: 4,131 Forumite
    1,000 Posts Second Anniversary Name Dropper
    edited 26 April at 6:30PM

    Not sure what "penalties" you are imagining, assuming they are normal cash ISAs, the only "penalty" would be if the money earns enough sat in a current account to take you over the tax savings threshold and therefore would attract tax, and given most current accounts earn next to no interest and it would only be in there for a few days at most, this would be unlikely.

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