Soldato
Probably an AI written article.
The Halifax ISA team informed me that any interest transferred out of the ISA becomes taxable once it leaves the ISA account. I wanted the interest to be paid into my current account to cover bills, and this is when they advised me of this.Are you sure? Below is what Google says -
"interest earned in an Individual Savings Account (ISA) remains tax-free as long as you withdraw it within the same tax year and you haven't exceeded your annual deposit allowance. Withdrawals from an ISA, including interest, dividends, or cash from selling investments, don't count as taxable income and don't need to be included on a UK tax return. "
Correct, but I requested the interest to be transferred out monthly, which Halifax confirmed the interest would become taxable - I didn’t realise it became taxable at that point.Am not sure what people are getting confused about but if you put 20K into your 24/25 cash isa and on April 4th 2025 the balance is 21K due to interest then that 21K is still in the ISA wrapper and tax protected.
Earnings inside an isa are tax free and can be transferred out without paying tax, were you asking them to pay the interest directly to a different account? also why aren't you letting you isa compoundCorrect, but I requested the interest to be transferred out monthly, which Halifax confirmed the interest would become taxable - I didn’t realise it became taxable at that point.
Is anyone thinking of leaving zopa then? It's a bit of a faff for approx £8 per month. Is there any providers that are going to stick to 5% plus rates ?
How likely is it they will increase again?
Maybe in half a year it would have been alright for me to fix but it's not worth it now. Plus fixing is not flexible and they don't pay interest monthly I believe
Correct, but I requested the interest to be transferred out monthly, which Halifax confirmed the interest would become taxable - I didn’t realise it became taxable at that point.
Question about ISA and tax
When your ISA matures,you transfer x amount into your no interest bank account,does that amount get taxed
Always used an accountant before i retired so no clue
Looking for a savings account for my son, 4. Have around £1000 already in the halifax kids monthly saver that ends next month that will pay 5.50%. What are the best options?
Junior SIPP, and Junior ISA or S&S ISA would be my vote.Looking for a savings account for my son, 4. Have around £1000 already in the halifax kids monthly saver that ends next month that will pay 5.50%. What are the best options?
I just didn’t realise, and no longer transfer the interest out.Why would you think it wouldn't be taxable at that point? It's no longer within the tax-free wrapper. You won't pay interest on the initial earnings from the ISA, but any future earnings from it would be subject to taxation. You should always have your interest from ISAs paid back into the account.
I was as I didn’t realise however, I have since cancelled the request thus, the interest now remains in the isa wrap.Earnings inside an isa are tax free and can be transferred out without paying tax, were you asking them to pay the interest directly to a different account? also why aren't you letting you isa compound![]()
I retired about 5 years ago so am not earning/or on PAYGYou also only get taxed on the interest earnings over £500/£1000 depending on the amount of tax you pay.
Pension income still counts as income as far as tax is concerned.I retired about 5 years ago so am not earning/or on PAYG