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Flexible ISA withdrawing and depositing in a LISA

Hi, could someone please clarify something for me. If I have already deposited £20000 in a flexible cash ISA and I withdraw £1000 am I free to then deposit that £1000 in a LISA as only £19000 of my original deposit has counted towards my ISA subscription for the year?

Comments

  • masonic
    masonic Posts: 29,736 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 18 April 2020 at 10:29AM
    Yes, if you flexibly withdraw current year subscriptions from one ISA you are allowed to use the portion of your annual allowance regained as if you never paid that money into the flexible ISA.
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