Can you take money out of an ISA?

Can you take money out of an ISA?

Yes, from most ISAs. gov.uk says: “You can take your money out of an Individual Savings Account (ISA) at any time, without losing any tax benefits. Check the terms of your ISA to see if there are any rules or charges for making withdrawals.”

Two types work differently. gov.uk says there are different rules for taking money out of a Lifetime ISA, and money in a Junior ISA cannot be taken out until the child turns 18, apart from limited exceptions. Both are covered below.

Taking money out, by ISA type

Easy access Cash ISA

Any time

Few or no restrictions, so check the terms

Notice or fixed rate Cash ISA

Terms apply

Notice periods or early access charges

Lifetime ISA

25% charge

Unless a first home up to £450,000, age 60 or terminal illness

Junior ISA

Age 18

Limited exceptions

Do you pay tax when you take money out?

No. gov.uk says you do not pay tax on interest on cash in an ISA, or on income or capital gains from investments in an ISA. If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it. HMRC’s guidance for providers adds that investments, and the income and proceeds from them, can normally be paid to the investor without any deduction for tax.

Once the money is out, it sits outside an ISA. Interest on it can be taxed above your allowances. gov.uk lists those as your Personal Allowance, the starting rate for savings and your Personal Savings Allowance. The Personal Savings Allowance is £1,000 for a basic rate taxpayer, £500 for a higher rate taxpayer and £0 for an additional rate taxpayer. See ISA or savings account.

The one charge to know about is on Lifetime ISAs. It is called a withdrawal charge and is covered below.

Does taking money out give your allowance back?

Only if your ISA is flexible. If it is not, the money you paid in has used that part of your allowance for the tax year, whether or not you take it out. HMRC’s guidance says that for non-flexible ISAs, withdrawals do not affect the subscription limits.

gov.uk gives this example. Your allowance is £20,000 and you put £10,000 into an ISA during 2026/27. You then take out £3,000. After that, you can pay in £13,000 more in that tax year if your ISA is flexible, or £10,000 if it is not.

A flexible ISA lets you take out cash and put it back in during the same tax year without reducing your allowance. It is an optional feature, so ask your provider whether your ISA has it. See how a flexible ISA works.

What does early access cost on a Cash ISA?

It depends on the type of Cash ISA. The FCA’s cash savings market study describes how each type works.

Some easy access Cash ISAs limit how many withdrawals you can make in a year: see how many withdrawals you can make from an easy access ISA.

The provider sets the charge in its terms. HMRC’s guidance on transfers says the holder of a notice account or fixed-term product may incur an “exit penalty or interest penalty” for moving it early.

In our fixed rate tables at the time of writing (6 October 2026), most early access charges are a set number of days’ interest. A few are a flat fee, and many products do not allow partial withdrawals, so getting money out means closing the whole account. Some charges are capped at the interest you have earned and some are not, so check whether a charge could leave you with less than you paid in. To see what a charge would cost on your own savings, use our fixed rate ISA penalty calculator.

Should you withdraw to move your ISA?

No. Ask the new provider to arrange a transfer instead.

How do Lifetime ISA withdrawals work?

A Lifetime ISA charges 25% on a withdrawal unless it is for a first home costing £450,000 or less, you are 60 or over, or you are terminally ill with less than 12 months to live. gov.uk says: “You’ll pay a withdrawal charge of 25% if you withdraw cash or assets for any other reason (also known as making an unauthorised withdrawal).”

If you withdraw the entire pot, the 25% applies to the total amount, including the government bonus. gov.uk’s example: £800 of savings earns a £200 bonus and makes a £1,000 pot. Withdrawing all of it costs £250 and leaves you with £750, which is £50 less than the £800 you saved.

For a first home with no charge, gov.uk says all of these must apply:

• the property costs £450,000 or less
• you buy at least 12 months after your first payment into the Lifetime ISA
• you use a conveyancer or solicitor, and the provider pays the funds directly to them
• you are buying with a mortgage

The Budget on 28 October 2026 said that from 29 October 2026 a first home above £450,000 that otherwise meets the qualifying rules can use Lifetime ISA money with a 20% charge instead of 25%.

gov.uk also says you will pay the 25% charge if you move a Lifetime ISA to another type of ISA before you are 60. If you die, it says the Lifetime ISA ends on the date of death and there is no charge to withdraw the funds or assets.

A Lifetime ISA can hold cash or investments. With investments your capital is at risk. See the Lifetime ISA and the Lifetime ISA withdrawal charge.

When can money leave a Junior ISA?

Not until the child turns 18, apart from limited exceptions. gov.uk says money in a Junior ISA belongs to the child and cannot be taken out until they are 18. The child can take control of the account at 16, but cannot withdraw the money until they turn 18. At 18 they can take out any money, and the account turns into an adult ISA automatically.

The exceptions are in gov.uk’s guidance. The registered contact, the person who manages the account, can take money out early if the child is terminally ill. gov.uk says that means the child has a disease or illness that is going to get worse and is not expected to live more than 6 months. If the child dies, the money is paid to whoever inherits their estate. See Junior ISAs.

Withdrawing from a Stocks and Shares ISA

You ask your provider to pay out the money or the investments. HMRC’s rules for providers say that, on your instruction, all or part of the investments held in the ISA, and the proceeds from them, must be transferred or paid to you. To get cash, some investments are usually sold first. HMRC says providers must sell ISA investments at the price they might reasonably be expected to fetch in the open market.

The value of investments can fall as well as rise, and you may get back less than you put in.

Innovative Finance ISAs are different. HMRC says withdrawal rights for non-cash investments in them are only those set out in the account’s terms.

How long does an ISA withdrawal take?

It depends on your provider and the type of ISA, and there is no single answer. Your account’s terms will say how and when money is paid out. A notice account pays out after the notice period, a fixed rate ISA runs for a term, and a Stocks and Shares ISA involves selling investments first.

gov.uk’s page on withdrawing your money gives no timescale. For transfers, it says transfers between Cash ISAs should take no longer than 15 working days, and other types of transfer no longer than 30 calendar days.