Any Tax To Pay ?

[Dinger2]

Due to the recent massive spending by HM Gov I’m convinced it will spark off a new and prolonged “credit crunch” mk2,so bad that 1 or2 banks or building socs will go under.
I have savings in several accounts with Santander including one joint acc shared with my elderly Mum. As I’m only covered by the FSCS up to £85,000 as an individual . I want to protect my hard-earned nest egg so I intend moving £100,000 out of Santander in to NS&I...Two accounts with Santander are I S As which have lain dormant and untouched for at least4 years because of tax changes.
My question is when I close the 2 ISA s and move the sum into NS&I will the money earned within the ISA s when theyWHERE ISA.s be taxable ?? Grateful for any answers.

[Gizmonster]

Any interest earned from within an ISA is tax free.

The first £1000 interest earned on savings not in an ISA, is also tax free (£500 if you're a higher rate tax payer) .... after that, you'll pay tax on any interest at your usual rate of income tax.

[fiction-factory]

I think the interest gained in the old ISAs would have been negligible anyway for the last few years at least- rates on such old accounts usually stand at under 0.1% now as they profit from inertia on behalf by customers.

[fiction-factory]

If tou are asking whether any back tax charge would be levied, the answer is no, provided the ISA rules were followed. FUTURE interest will be taxable if you transfer out of the ISA but as Giz says you have an allowance.
If the ISA was in joint names you may find you both get the £85000 protection- it is per person as I understand it- so as long as it's listed under 2 names you should both be covered.

[AuntPollyGrey]

You can't buy an ISA in joint names.

[THECORBYLOON]

As the money is no longer in an ISA it would be taxable. Can you not transfer it to an NS & I ISA?

[ToraToraTora]

No, any money earned in a valid ISA is tax free.

[ToraToraTora]

If I were you I'd bung the max in premium bonds straight away. I win most months and re invest, it's better than any interest bearing account in the long run.

[ToraToraTora]

TCL:"As the money is no longer in an ISA it would be taxable." - yes any earnings on that money will be taxable not that earned whilst it was an ISA.

[fiction-factory]

True, APG. I was referring to the OP's statement "I have savings in several accounts with Santander including one joint acc shared with my elderly Mum"
So replace the word ISA with savings and my answer is otherwise the same- for a joint account the £85000 compensation figure applies to both names

[Peter Pedant]

onthe facts given
no
practically speaking v little

ISAa are tax free until yo take them out
where you put them are taxable BUT the rates are so low that the gross amount is unlikely to attract that large amount

the £85 000 is worth tracing
but remember the tax tail whould never wag the dog