Post by alexs on Dec 28, 2017 19:40:39 GMT
Maybe of interest to others: I realised that the IFISA allows to withdraw money back into the standard account or your bank account increasing your "unused IFISA allowance" by that amount again, which means that you can then re-deposit the same amount later again.
So for anyone with a QAA balance and not using their ISA allowance anywhere else it should make sense to have an AC IFISA. By deploying money into the QAA within the IFISA one can withdraw and top up over and over again as with the standard QAA.
See chat transcript with AC:
Me: What happens if I withdraw funds from the IFISA cash account into the standard cash account? Do I keep my IFISA allowance for that amount if I wanted to deposit funds again later into the IFISA?
AC: If you only have an ISA with money in it from the current tax year. You can withdraw and then replace the same amount of funds within the current Tax Year and it won't count towards this year's allowance again.
AC: If you only have an ISA containing cash from previous tax years. Whatever you withdraw you can replace into the same account but this must be in the same tax year for it to count as replacing the cash withdrawn so not using any of your current year's allowance. You can't put back more than you took out even if you didn't fill last years' allowance.
AC: If you have both of the above. Withdrawals are set against the current tax year's allowance first If you withdraw an amount larger than the amount you have put in so far this Tax Year then the extra amount is treated as being from previous years. When putting funds back in this works in reverse, with funds allocated to the previous years initially and if all replaced, funds are then allocated to the current year allowance. This must all happen in the same Tax Year.
So for anyone with a QAA balance and not using their ISA allowance anywhere else it should make sense to have an AC IFISA. By deploying money into the QAA within the IFISA one can withdraw and top up over and over again as with the standard QAA.
See chat transcript with AC:
Me: What happens if I withdraw funds from the IFISA cash account into the standard cash account? Do I keep my IFISA allowance for that amount if I wanted to deposit funds again later into the IFISA?
AC: If you only have an ISA with money in it from the current tax year. You can withdraw and then replace the same amount of funds within the current Tax Year and it won't count towards this year's allowance again.
AC: If you only have an ISA containing cash from previous tax years. Whatever you withdraw you can replace into the same account but this must be in the same tax year for it to count as replacing the cash withdrawn so not using any of your current year's allowance. You can't put back more than you took out even if you didn't fill last years' allowance.
AC: If you have both of the above. Withdrawals are set against the current tax year's allowance first If you withdraw an amount larger than the amount you have put in so far this Tax Year then the extra amount is treated as being from previous years. When putting funds back in this works in reverse, with funds allocated to the previous years initially and if all replaced, funds are then allocated to the current year allowance. This must all happen in the same Tax Year.
