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Flexible ISA Question

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sirarthur
sirarthur Posts: 25 Forumite
Fifth Anniversary 10 Posts Name Dropper
edited 4 March 2020 at 10:00AM in ISAs & tax-free savings
If I have contributed £5000 this tax year to a flexible cash ISA and contribute a further £5000 in the next tax year, will both amounts be available to take out and use elsewhere or just the current year's contribution?
Apologies, just saw the Flexible ISAs guide below which answered my question.

Comments

  • masonic
    masonic Posts: 27,340 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    ISA flexibility, when available, applies to the whole balance of your ISA.
  • Fingerbobs
    Fingerbobs Posts: 1,705 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If you "replace" money in one tax year, can it be withdrawn and replaced again in the following tax year without impacting either year's allowance? 
    e.g. if I withdraw £1000 in February 2020, put it back in on 4th April, then withdraw it again on 7th April, can I then, later in the year, put in the full allowance for 2020/21 (presumably £20k again), plus the £1000 I withdrew on 7th April? 
  • masonic
    masonic Posts: 27,340 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If you "replace" money in one tax year, can it be withdrawn and replaced again in the following tax year without impacting either year's allowance? 
    e.g. if I withdraw £1000 in February 2020, put it back in on 4th April, then withdraw it again on 7th April, can I then, later in the year, put in the full allowance for 2020/21 (presumably £20k again), plus the £1000 I withdrew on 7th April? 
    Yes, that's how it works. You can zero your balance each 6th April if you like, then replace the lot +£20k by 5th April the following year.
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