ISA

[rugeleyboy]

Hi all, i have some savings in a an ISA and unfortunantley business is a little tight at the moment so i was wondering if i can take money out of the isa to pay a supplier and repay it as and when?

[dzug2]

You can take the money out no problem, but you can't put it back as and when - it will count as new money and come towards the current year's allowance

[factor-fiction]

It dependhow much you have paid in this tax year. t depends how much of your annual allowance you have paid in so far this tax year. How much have you paid in and how much do you want to withdraw

[VHG]

You only get so much money a year to put in your ISA. That counts as your ISA allowance for that year.

If you take money out of a previous years ISA you "lose" the ISA allowance for that year.

You can put money back in to your ISA, but it will count towards THIS years ISA not the previous years.

Same as if you want to transfer money from an "old" ISA in say NatWest to an ISA in say Santander. If you take the money out the old NatWest ISA to put it in Santander you lose the ISA connection for that money.

The only way to transfer it is to to go Santander and ask them to do an ISA transfer and NatWest send the money to Santander (you never get to see it) so you "keep" the ISA connection for that money.

[rugeleyboy]

thanks guys.

there is £3,500 in there which i paid in around july, i need £2K out?

[factor-fiction]

Annual limit is £5340 I recall. If you have already paid in £3500 this tax year you can only pay in another £1840

[VHG]

So if you put it in in July 2011 it is THIS years ISA so as far as I know you can take it out as long as you pay it back in before April 5th 2012.

Of course you lose the tax free interest for that money till you pay it back.

Note there may be some clauses on the ISA which says you CANT take it out, or you lose the interest. I have one that has to stay in for 2 years and I cant take it out or I lose all my interest.

[factor-fiction]

...so you can withdraw £2000 (or more if you want) but you can't pay back in any more than £1840

[VHG]

It seems once the money comes out for THIS tax year you cant put it back in as part of THIS years allowance (as factor30 says).

See here "How much money can be withdrawn"

http://www.moneysavin...without-tax#withdrawn

Of course you can have a cash ISA and a shares ISA. So you could pay the money in as a shares ISA later in the year (if you have not used your Shares ISA allowance)

[rugeleyboy]

thanks guys, this has proved very helpful.