Should I have an ISA?
Is Your ISA, Your Flexible Friend?
Since April 2016, it has been possible to take your monies out of an ISA (effectively borrow) the money, and use for whatever purposes you require. Providing you pay the money back into the ISA, within the same tax year you took the money out, then the I S A would still retain the same tax benefits.
This is possible with cash, stocks and shares ISA’s and Innovative Finance I S A’s, you can even extract monies out of one of these types of I S A and put it back in another.
There is a catch.
Only about one-third of ISA providers offer flexible I S A’s.
Is this flexibility important?
There are numerous instances whereby clients would benefit from being able to access their I S A monies.
We would recommend that savers who value flexibility should check with their I S A providers to see if they offer this facility.
There is another catch.
By borrowing the money from your I S A – you could lose out on capital growth and dividends that would have accrued during the period your monies were out of the market.
Need to know more? Call us on 01189 347 921