loss of isa umbrela

thelongroad

Hi I was wondering if anyone knew a way of getting back my isa position .. okay what hapend was I was going to sell my isa stocks and shares after a few phone calls to the bank  I was ready to go with the intention of keeping the money in a isa position not botherd about intrest as long as it was safe .. on the banks web hub I used you followed the options it asked where do you want the funds to go?.  3 options 1 bank account 2 stocks and shares isa or 3 stocks and shares on line ..I chose the wrong one which was bank account ..the reason for this was the others spoke of stocks and shares. Big mistake.So how do I go about sorting this out and preventing other making the same mistake. It was  a bit misleading with 2 options saying shares .. the bank are looking into this and they have not yet came back.  but I belive their hands are tied as isa has got to do with HMRC. thanks for all your help with this and If I can name the bank I will as this was a very easy loop hole for other to fall into .. 

eskbanker

If you chose to withdraw money from an ISA to your bank account then that's irreversible (in terms of not counting against current year allowance) unless the ISA is a flexible one, which permits withdrawal and repopulation of ISA money: https://www.moneysavingexpert.com/savings/flexible-isas/

thelongroad

Great answer ur right.. If you with draw it from the umbrella u loss the isa status it had and again ur right to point out that this. Can be reinstated using part of your isa allocation for that year.. But this is more about the loop hole or black hole to be more to the point which I had to navigate and chose one  option out of the 3.. Namely choose a cash olnly account.. A stocks and shares isa account . Which is obviously stocks or the investment account which again is stocks and shares. So it was a easy mistake to choose cash only account.. Which I did. Which removed my isa stause. Have assumed it was a cash isa. Thanks for your time and in put to this have  you any other ifo on how to reinstate  this or at least encorange the bank to make it more user friendly so nobody else makes this mistake. 

eskbanker

In terms of reinstatement, is your S&S ISA a flexible one?  If not, how much did you withdraw and do you have headroom in your current year allowance to pay that all back in again?

You've evidently found a screen confusing but difficult to say if others would too, feel free to name the bank and/or post a screenshot with the actual wording and layout.  I would have expected the default to be that sale proceeds would stay as cash within the S&S ISA itself, at least initially, with subsequent movement outside the umbrella treated as a separate transaction, but if you can show the exact actual wording displayed then that might help people understand why you went wrong....