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Where Taxpayers and Advisers Meet

Does ISA interest count to HICBC limit ?

Dave12335
Posts:46
Joined:Sat Feb 09, 2019 10:09 am
Does ISA interest count to HICBC limit ?

Postby Dave12335 » Sun Feb 24, 2019 3:20 pm

Hi taxies, I’ve looked for the answer but struggled.

I receive a small amount of ISA interest each year.

As we know, the HICBC limit is currently £50,000 based on adjusted income ie gross income (including savings income) less gift aid less personal pension contributions.

I’m wondering if the ISA interest counts towards that limit ?

Thanks!

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Does ISA interest count to HICBC limit ?

Postby darthblingbling » Sun Feb 24, 2019 3:29 pm

No, it's exempt income.

Dave12335
Posts:46
Joined:Sat Feb 09, 2019 10:09 am

Re: Does ISA interest count to HICBC limit ?

Postby Dave12335 » Sun Feb 24, 2019 7:26 pm

Thanks, where is it on the legislation or published guidance please ? Thanks.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Does ISA interest count to HICBC limit ?

Postby darthblingbling » Sun Feb 24, 2019 8:21 pm

Nowhere, adjusted net income is based on taxable income. ISA interest is exempt and doesn't even come into the calculation.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Does ISA interest count to HICBC limit ?

Postby robbob » Mon Feb 25, 2019 8:59 am

The guidance on the gov website sort of does confirm this in black and white if you follow through the links


https://www.gov.uk/child-benefit-tax-charge
Your adjusted net income is your total taxable income before any personal allowances and less things like Gift Aid.
this has link to following section

https://www.gov.uk/income-tax
You do not pay tax on things like
income from tax-exempt accounts, like Individual Savings Accounts (ISAs) and National Savings Certificates

Dave12335
Posts:46
Joined:Sat Feb 09, 2019 10:09 am

Re: Does ISA interest count to HICBC limit ?

Postby Dave12335 » Mon Feb 25, 2019 9:03 am

Thanks both, greatly appreciated.

accutalk
Posts:13
Joined:Mon Jun 25, 2018 9:19 am

Re: Does ISA interest count to HICBC limit ?

Postby accutalk » Mon Feb 25, 2019 11:38 am

Hi taxies, I’ve looked for the answer but struggled.

I receive a small amount of ISA interest each year.

As we know, the HICBC limit is currently £50,000 based on adjusted income ie gross income (including savings income) less gift aid less personal pension contributions.

I’m wondering if the ISA interest counts towards that limit ?

Thanks!
No it is exempted


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