brianlom1
Member of DD Central
He's not the Messiah, he's a very naughty boy!
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Post by brianlom1 on Apr 27, 2020 19:23:58 GMT
It would only lose its tax free status if it remained outside ABL's ISA across the following tax year boundary (April 2021 in this case). E.g. it can be put back in ABLs ISA and either invested there or transferred elsewhere this tax year. Just in general and not related to this thread as such I am amazed how often ISA's cause confusion and problems, seems to be an unnecessarily complex system. I wonder how many people as a percentage of the population actually could save £20000 year on year, or even more so £40000 as a couple. I hope that when the Chancellor is slightly less busy he takes it outside and gives it a good slapping. Exactly the same result could be achieved by simply giving people over the age of 16 a £20000 a year accumulating amount they could invest tax free in approved ways. IMHO, ISAs are a doddle compared to pensions - if ever an unnecessarily complex system was due for a shake up, pensions legislation would get my vote (apologies for taking the discussion even further off topic)
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Post by ladywhitenap on Apr 27, 2020 21:40:43 GMT
Seconded Brianlom! I used to work for a large company and became the pensions rep for our dept. It seemed when ever there was a change to the scheme, there was an overiding rule that individuals pensions had to be worked out according to all the previous rules as well as the new ones and the actual pension paid was the best of each calculation. Hence none of the old rules could be got rid of and the system just became more and more complex. One day on an order from on high, a fairly long serving senoir manager had to be made redundant. A young HR manager was tasked with calculating the total cost of doing the deed and did his sums based on the latest rules. The victim was offered a package based on that cost which he accepted and then produced a set of the old rules and the company was forced to pay out a hell of a lot more on top! The HR manager was disposed of shortly after!
LW
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Apr 28, 2020 17:06:45 GMT
Both pensions and ISAs need simplification, and also student loans. When politicians come up with an idea and ask Sir Humphrey to implement it he will always choose the method which creates the most civil service jobs. ISAs can be done as Badly Drawn Stickman suggests and student loans could be replaced by a graduate tax as suggested by the Lib Dems years ago (BTW I am certainly no LibDem voter) which would have additional psychological advantages; as well as the efficiency savings it would remove the fear/stigma/disincentive of debt. It would also, to some extent, link the amount paid to the benefit obtained from a university education, on the assumption that the university education enabled him/her to earn more than otherwise.
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Post by elephantrosie on May 28, 2020 18:10:42 GMT
Then it'll lose the tax free status on the withdrawal - ISAs aren't flexible across tax years! No it won't, the ABL IFISA is flexible meaning you can withdraw all of it and then redeposit across the tax year end to maintain its status (as victors said)this is new for me. Just checking if my understanding is correct then. Say I have £30k in ABL IFISA (no new cash in this tax year yet). I want to transfer £10k out of it. Could I then redeposit this £10k in later this tax year, and not counting that as part of the £20k ISA allowance for the year?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 28, 2020 18:39:25 GMT
No it won't, the ABL IFISA is flexible meaning you can withdraw all of it and then redeposit across the tax year end to maintain its status (as victors said)this is new for me. Just checking if my understanding is correct then. Say I have £30k in ABL IFISA (no new cash in this tax year yet). I want to transfer £10k out of it. Could I then redeposit this £10k in later this tax year, and not counting that as part of the £20k ISA allowance for the year? Yes, within a tax year, anything you withdraw from a flexible ISA you can redeposit without it counting as current year allowance. That is true even if you have got a mixture of new & old money. So if you had put £10k in this year, you could withdraw £20k and replace it and still have £10k left of your allowance. In that scenario you could even withdraw £20k, subscribe £10k to an ISA of a different type as current year money and £10k back into Ablrate to replace previous year money & you would still have £10k of allowance to put in either ISA or one of a third type.
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corto
Member of DD Central
one-syllabistic
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Post by corto on May 29, 2020 7:31:24 GMT
There are two processes, transferring and withdrawal.
If you *transfer*, which usually implies you fill a form and send it to the provider you want to transfer the money to, the money is out of the source account. You can only "transfer it back in" by going through the same procedure. You can do that as often as you want, but filling the forms is a bit tedious. It has nothing to do with "flexible" ISAs. You can do this with all ISAs, any time.
If you *withdraw* from an ISA provider you move money from the ISA protected space into non-protection. It is only then that it becomes important whether the ISA you move out of is *flexible* or not. If it is flexible you can put the money back in, otherwise you can't (unless you are below your ISA limit of 20k, it would count against this limit for a non-flexible ISA).
There are also time limits. Any money you take out has to be back in before the end of the tax year or the wrapper status is lost.
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