Flexible ISA Transfer

sirarthur

I had a flexible ISA last year with £5000 in it and since the new tax year it says '£25000' available to contribute' If I take out £4900 to move to a higher interest account will any subsequent transfer to a different provider only move £100 or will the full £5000 possible contribution go with it?
Hope this makes sense.

masonic

It doesn't make sense I'm afraid. If you had a flexible ISA last year with £5000 in it, and you haven't omitted some critical details, then it is not possible for you to currently have £25000 available to contribute. If you have already withdrawn £5000 from it during this tax year, then the 'available to contribute figure would be correct, but you would no longer have £5000 in the account and therefore could not flexibly withdraw another £4900, and would not have a remaining balance of £100 unless this is made up of interest on the original £5000.

Whatever you've actually done, when you transfer the ISA to another provider, you will end up with an allowance of £20000 minus any subscriptions you have made during the current tax year. If you have made a net flexible withdrawal of previous year money at the point you transfer, you will lose the ability to replace this money without it affecting your current year allowance.