Flexible ISAs - moving money between them "out of order"

Simavon

Hello,

Let's sat that I have two flexible ISAs, one cash, one stocks and shares, and between them I've maxed out the annual allowance. Now let's say I want to pay money into the S&S ISA. I need to withdraw money from the cash ISA in order to do this - but there is a notice period of around 30 days. Suppose that I have already submitted the withdrawal request, but want to make the share purchase before the notice period has expired.

If I was to pay into the stocks and shares ISA, temporarily exceeding the annual allowance, have I broken any rules? At what point will the total contributions be checked? If it's only done at the end of the tax year, is there any reason anyone would notice?

TIA.

masonic

There is nothing in the annual returns to HMRC that would allow something like this to be picked up. Individual ISA managers will only know about their own accounts. It is against the rules, but very low risk IMHO.

Simavon

I'll have to dig out the legislation I think. The reports say for flexible ISAs say the reported value is subscriptions minus withdrawals so I think you're right that it would not be flagged there. It occurred to me after posting that in theory given this you could put 20,000 in each, and then withdraw 20,000 (in any proportion) before the end of the tax year, and it would all look correct. Massive loophole?

The first withdrawal I've made of funds from the cash ISA will complete next week so I can probably hang on until then.