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Posted Fri, 05 Jul 2024 22:08:53 GMT by fishfishfish
I would like to clarify about tax status of ISA account. For example, I have a cash ISA account and put GBP 20,000 into the cash ISA account for 1 year, the interest rate 5%, so there will be £1000 interest. If I transfer the interest £1000 from cash ISA account to current account, is this £1000 taxable? I keep £20,000 into the Cash ISA account. Situation 2: If I transfer the principal £20,000 into the current account and leave the interest £1000 into the ISA account, is the principal £20,000 taxable? Situation 3: If I transfer the principal £20,000 and the interest £1000 from cash ISA account to the current account, is the total £21,000 taxable? Situation 4: If I transfer some money, say £11,000 from Cash ISA account into the current account, and keep £10,000 into the cash ISA account, is £11,000 taxable?
Posted Fri, 12 Jul 2024 09:39:50 GMT by HMRC Admin 25 Response
Hi fishfishfish,
Once you move money out of an ISA, it loses its protection and any interest earned elsewhere is taxable income.
Thank you. 

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