How can you withdraw money from an ISA without being taxed on the money or the interest earned?
How would you withdraw or recieve money from an ISA without being taxed or touched by any type of government fee? For example say I would be putting just cash in this ISA and no shares.
I've previously heard that when withdrawing the money you lose the tax free rewards.
Your ISA provider is registered with HMRC and allowed to pay interest without tax being deducted. When you withdraw money there is no tax to pay or worry about. But once that money is withdrawn, if you then put it into a normal savings account, the resulting interest will be taxed.
The trick is to leave your money in the tax-free Cash ISA as long as you can until you need it.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. Please note tax rules are subject to change. To find an IFA please go to http://www.unbiased.co.uk
Danny Cox, Certified Financial Planner CM, Hargreaves Lansdown, www.hl.co.uk. Twitter: @DannyCoxIFA