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    I've withdrawn fund income dividend payments from my ISA - is my allowance affected?

    30 July 2021

    Question by Paul

    Hi, I'm with a large well known investment broker and I have a stocks and shares ISA. I have not invested any money at all this tax year so I believe my remaining ISA allowance is £20K. However I have withdrawn fund income dividend payments from the ISA to the tune of £11K. They say I have only £9K left in my allowance, I say that is wrong as you can't count investment income as money invested - who's right please?

    Answered by Boring Money

    Hi Paul, thanks for your question. I agree with you and you have £20k remaining in your ISA allowance for this year. The dividend payments you have withdrawn will not impact the ISA allowance however whilst on the topic it may also be worth us checking if you have a flexible ISA which would allow you withdraw capital from the ISA and put it back again in the same tax year.

    Answered by

    Boring Money

    Here to help you understand your options and make smart money choices.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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