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Posted Sun, 07 Jul 2024 12:54:55 GMT by Grandmutti Bowly
Can I have my ISA interest paid monthly into my current account for living expenses without incurring tax charges?
Posted Fri, 12 Jul 2024 14:19:00 GMT by HMRC Admin 32 Response
Hi,

This is something you should discuss with your ISA providers. Any of the interest generated from the ISA is tax free, so it would be at the discretion of your provider whether they would pay the interest monthly as you suggest.

Thank you.
Posted Fri, 12 Jul 2024 15:31:50 GMT by Grandmutti Bowly
Thank you. The question is actually about tax. If the tax free ISA interest is paid into my current account and I use it for living expenses will I incur any tax charges.
Posted Mon, 15 Jul 2024 13:42:16 GMT by HMRC Admin 10 Response
Hi
Any interest arising on savings within your ISA are tax free.  If you take that interest out of the ISA and use on general day to day expenses, then any interest arising from the money taken out of the ISA will be taxable.
 

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