Following the reforms on pension freedoms, Chancellor George Osborne said,‘There is more to do to create a savings culture.’
He said allowing people to take money out of their ISA without the sum counting towards the annual ISA allowance limit would be one of four steps to reform savings and investments in the Uk.
Savers will have the flexibility to be able to take money out of their ISAs and put it back in the same financial year without it counting towards the annual tax-efficient ISA allowance.
Currently, the ISA allowance is £15,240 (2015/16), and once you’ve deposited that amount, you can’t put any more in during the same tax year, even if you make a withdrawal.
The changes, which will come into effect from autumn 2015, will mean that savers who need access to their ISA savings are not penalised if they then want to save more later on that tax year.
The only limit is that you need to top up your ISA during the same financial year the withdrawal was made – if you don’t, it will count towards your new tax-efficient ISA allowance.
Mr Osborne added:‘I believe people should be trusted with their own money.’id they earned less than they did, reflecting the typically British characteristics of understatement and modesty.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.Tax treatment is based on individual
circumstances and may be subject to change in the future. Although endeavours have been made to provide accurate and timely information, Lloyd & Co cannot guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough review of their particular situation.We cannot accept responsibility for any loss as a result of acts or omissions.