Take a Loan from your ISA !

Take a Loan from your ISA ! – In the March 2015 Budget, the government announced that investors would be able to withdraw money from cash and stocks and shares ISA, and replace that within the same tax year – without reducing that years ISA allowance.

So if you are thinking of taking advantage of this flexibility check with your provider, as not all are prepared to apply the new rules. You need to ask them have they adopted the new rules for flexible ISA’s.

How does this work in practice?

Say you have already put £10,000 into an ISA this year but suddenly ned to take an expensive holiday, you take the £10,000 out, providing you replace these monies in this tax year, you will still have room to pay a further £5,240 into your ISA.

In the past, had you withdrawn monies from your ISA, then replacing those monies would have counted as a new contribution and may have put you over your ISA limit.

Needless to say, Junior ISA’s, Help To Buy ISA’s do not have this new flexibility.

Better to still, this flexibility now includes previous ISA savings!!!