Flexible ISA and ?going over allowance

masonic

leaphaze wrote: »

It is possible to mix flexibility across ISA types?

For example pay £20,000 into Cash ISA 15th Aug, withdraw £5,000 from Cash ISA 15th Sept, pay £5,000 into S&S ISA 15th Sept.

So using £15,000 in a Cash ISA and the rest of the annual allowance in a S&S ISA.

Yes, current tax year money flexibly withdrawn from an ISA can be paid back into a valid ISA of a different type.

patient_investor

Yes, current tax year money flexibly withdrawn from an ISA can be paid back into a valid ISA of a different type.

Not sure if I understand it correctly. I can withdraw from Zopa IFISA, pay that immediately to iWeb ISA S&S, and still preserve my 20k annual allowance to be used later? Or there are some limitations to that? Or if I withdraw anything from Zopa IFISA, that allowance is forever gone, I can't use that again, have to use my new allowance of 20k this year?

masonic

pioruns wrote: »

Not sure if I understand it correctly. I can withdraw from Zopa IFISA, pay that immediately to iWeb ISA S&S, and still preserve my 20k annual allowance to be used later? Or there are some limitations to that? Or if I withdraw anything from Zopa IFISA, that allowance is forever gone, I can't use that again, have to use my new allowance of 20k this year?

You can only pay flexibly withdrawn money into a different ISA if it is money paid in during the current tax year. So for example pay £5,000 into Zopa ISA on 6th April 2019, flexibly withdraw that £5,000 on 3rd May and then pay £20,000 into iWeb S&S ISA.

Money flexibly withdrawn that was paid in during a previous tax year must be replaced in the same ISA. Flexibly withdrawing previous year money increases your annual allowance on that ISA only, not other ISAs you hold/open.

david78

Having a Flexible ISA can be useful in a number of ways.

I am currently making payments (subscriptions) into my current year's regular savings cash ISA (Principality BS 1.85%) by making withdrawals from my Coventry BS flexible ISA (1.5%) (that holds only previous year's contributions + interest).

This process creates a flexible allowance on my Coventry account. Later in the year I will be able to pay the money back in (using up the flexible allowance I have created) with money from maturing fixed rate bonds and other, non-ISA regular savings accounts.

The only downside is I can't transfer the Coventry account away without losing the flexible allowance. I need to top it back up first.