I've withdrawn fund income dividend payments from my ISA - is my allowance affected?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 However I have withdrawn fund income dividend payments from the ISA to the tune of £11K.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 Alistair Fullerton
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 The dividend payments you have withdrawn will not impact the ISA allowance however whilst on the topic it may also be worth us checking if you have a flexible ISA which would allow you withdraw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.