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Posted Mon, 31 Oct 2022 13:11:56 GMT by hsuwinson
I have a cash isa account cancelled during the cooling off period. My deposit amount, along with a few days of interest was returned to my designated bank. May I ask if the interest involved is taxable in this case? If yes, is it under savings tax category ?
Posted Fri, 04 Nov 2022 09:20:28 GMT by HMRC Admin 19
Hi,

Where the interest is accrued outside of the guidelines of an ISA, then it is taxable. You will need to contect the ISA provider, to determine if the interest in this case, is taxable or not.

Thank you.
Posted Thu, 24 Nov 2022 09:40:35 GMT by Lewis
Hello, If paying in to a HTB ISA, then opening a flexible ISA and depositing in to that within the same tax year as paying into the HTB. If the flexible ISA is cancelled within the cooling off period and money returned, does it count as an ISA subscription? Thanks
Posted Fri, 25 Nov 2022 14:55:22 GMT by HMRC Admin 30
Hi, 

If the money returned inclued interest, then the interest would be subject to Income Tax. It would not count as an ISA subscription.

Thank you.

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