Tesco Bank savers to benefit from new flexible ISA rules
8 April 2016
Customers of Tesco Bank’s Instant Access Cash ISA will now benefit from the new flexible ISA rules introduced on 6th April. This means that Instant Access Cash ISA customers will be able to withdraw and replace money from their ISA without it counting towards their annual ISA subscription limit for that year, as long as it is replaced in the same tax year it was withdrawn.
Commenting on this change David McCreadie, Managing Director, Banking, at Tesco Bank, said:
“We’re delighted to be able to offer Tesco Bank customers that bit more flexibility with their Instant Access Cash ISA. This is just one of the things we’re doing to make our products as simple and helpful to customers as possible.”
For more information on the Instant Access Cash ISA please visit: www.tescobank.com/savings/isa-accounts/instant-access/index.html
For more information and media enquiries please contact:
Tesco Bank press office
+44 (0) 131 274 3630
Notes to Editors:
From 6 April 2016, you will be able to withdraw and replace money as often as you like from both current and previous years’ subscriptions. Should you wish to replace what you have withdrawn, you must do so by 5pm on the 5th of April in the same tax year it was withdrawn. Example:
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
Do I have to use flexibility?
No. This is an added feature that our customers may wish to use. Rather than creating a new product, we are introducing flexibility to our existing Instant Access Cash ISA.
Can I withdraw and replace current years’ subscriptions?
Yes. You can withdraw any of your subscriptions made in the current tax year. You can only replace and pay in money up to your current year’s subscription allowance.
Can I withdraw and replace previous years’ subscriptions?
Yes. You can withdraw all of your subscriptions made in previous tax years. You can only replace up to what you have withdrawn for previous tax years in the same tax year they were withdrawn.
How do I know which years’ subscriptions I am withdrawing from?
Current years’ subscriptions will be withdrawn first. If you withdraw more than you subscribed in the current tax year, the balance will be deducted from previous years’ subscriptions. If you choose to replace what you have withdrawn, your previous years’ subscription will first be replenished up to the amount withdrawn and after that will be counted towards your current years’ subscriptions.
Can I replace money withdrawn at any time?
No. Replacement money has to be paid back into your Cash ISA in the same tax year as it is withdrawn or you will lose the ability to replace it. This means you will need to replace any money you have withdrawn before 5pm on the next 5th April after the withdrawal was made.
Are there exceptions to this?
Yes, there are certain circumstances when you cannot replace withdrawals. These include; transfers out to other providers, withdrawals by HMRC to cover a tax debt, withdrawals made on the instruction of HMRC to remove invalid subscriptions and cancellations (within 30 days of receiving your welcome pack).
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Our 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ