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Posted Sat, 31 Aug 2024 10:47:30 GMT by winnie kwok
Hello, I have a fixed rate cash isa account set up in tax year 2023-2024, say 500 pounds. After it matured, it was then transfer to a non isa account by the provider to a nos isa account. In this case, i fail to transfer it to other cash isa account with the isa transfer service, because it is no longer a isa account. My questions are: 1. do the interests incurred from the saving plan still tax free? 2. if I move this money to a new isa account manually, does it using my current year(2024-2025) isa allowance?
Posted Fri, 06 Sep 2024 09:22:09 GMT by HMRC Admin 13 Response
Hi,
The interest that accrued while in the ISA, remains tax free.  
Any interest arising from the capital in the non ISA account is taxable.  
If you move this capital to a new ISA, then it will count towards your £20000 limit for the current tax year.
Please see Individual Savings Accounts (ISAs): Overview
Thank you

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