Flexible Isa...putting cash back

The_stingemeister

If you had, say, £25,000 in a flexible isa and took £24,000 out can you replace that same amount as long as its in same tax year? Or does it have to be the £15,240 limit?

bowlhead99

Yes you can replace the full amount that your took out of that flexible ISA account back into that same ISA product later in the same tax year.

If you forget to do this - or only do part of it - by the end of the tax year, and a new tax year starts, you've missed the opportunity to replace it.

So any money you put into the ISA from that point (the new tax year) would count as 'new subscriptions' subject to the annual limit. Although the annual limit is going up from £15.24k to £20k from the 2017/18 tax year so would almost fit your £24k.

pinkdalek

You sure can in the same tax year but only with the same provider.

So if you transferred your ISA out after you had withdrawn the £24k you would not be able to put the £24k back in the ISA with the new provider.

The_stingemeister

pinkdalek wrote: »

You sure can in the same tax year but only with the same provider.

So if you transferred your ISA out after you had withdrawn the £24k you would not be able to put the £24k back in the ISA with the new provider.

So its OK if I did an isa transfer of, say, £25,000 from Santander to Nationwide and later in year took it out of the Nationwide isa, but returned it later in tax year?

Amandajdav

I am about to put my full ISA allowance into an ISA Nationwide. If Nationwide open a new ISA with a better rate can I transfer even though I have used my allowance.

masonic

Amandajdav wrote: »

I am about to put my full ISA allowance into an ISA Nationwide. If Nationwide open a new ISA with a better rate can I transfer even though I have used my allowance.

It depends on the T&Cs of the two accounts, but in theory yes.

pinkdalek

The_stingemeister wrote: »

So its OK if I did an isa transfer of, say, £25,000 from Santander to Nationwide and later in year took it out of the Nationwide isa, but returned it later in tax year?

Yes. But lets say you pulled it from the Santander account initially then you would have to put it back in your Santander ISA before you transfer it to Nationwide. (in the same tax year)

The_stingemeister

pinkdalek wrote: »

Yes. But lets say you pulled it from the Santander account initially then you would have to put it back in your Santander ISA before you transfer it to Nationwide. (in the same tax year)

Thanks, I grasp that you have to transfer in the right way, or you lose the tax free status, by filling a transfer form and leaving it to the bank/building society to transfer. What I understand know (I think) is a flexible cash isa is basically a tax free savings account that has no restrictions or penalties on any transfers in or out, as long as you don't transfer in more than the isa total accrued by you.

chrisc156

Ironic but I was just about to post exactly the same question with respect to a Nationwide Flexlusive ISA. I have just spoken to Nationwide on the phone and posed the question that if I transfer my current ISA savings of £50k+ from First Direct and did not add any new money could I transfer say £30k out and put it back in within the same tax year? Answer I was given - you cannot withdraw any previous years money from it and it could only be up to the 15.24k allowance! Can someone point me to T+Cs that say you can do this?

xylophone

http://www.nationwide.co.uk/support/support-articles/faqs/flexible-isa-faqs#xtab:which-products-offer-flexibility


"Yes, you can withdraw funds from current and previous years’ subscriptions from 6 April 2016 and pay them back into a cash ISA with Nationwide (within that tax year), without it counting towards your current year's ISA allowance."

chrisc156

Many thanks for the above, it just amazes me when the staff don't know about their own products!