Accidentally over-subscribed to S&S ISA - how best to reverse it?

ColdIron

The point that masonic is making is that if the Nationwide ISA is flexible it does matter as the II one is not

homestraight

I'm interested in why the need to reverse this error? 
From the information others have posted it feels unnecessary, pointless and perhaps even disadvantageous to try. 
Am I missing something obvious here?

masonic

[Deleted User] said:

Hi,

don't think it matters which account you withdraw the money from, you have still subscribed to 2 x ISA in same tax year, and even withdrawing £20k from one, doesn't annul that account.

It does matter because one ISA is flexible and the other isn't. If £20k was withdrawn from the non-flexible ISA then £40k would still have been subscribed during this tax year.

As mentioned just a few posts ago, there are no rules against subscribing to 2 x ISA in the same tax year. You can subscribe to one of each type.

masonic

homestraight said:

I'm interested in why the need to reverse this error? 
From the information others have posted it feels unnecessary, pointless and perhaps even disadvantageous to try. 
Am I missing something obvious here?

HMRC is likely to let the OP off with a warning if it is the first offence. If it isn't a first offence, or if the OP nevertheless would rather not be in a situation where HMRC intervenes, then the course of action being discussed is useful.

ColdIron

From an MSE article

Another key rule is you must replace the money in the same ISA account you took it out from, with two exceptions.

• If a full withdrawal results in the automatic closure of your account you can open a second cash ISA you can put money into (but you can only do this once per tax year).

• Remember, flexibility works on three types of ISAs: cash ISAs, innovative finance ISAs and cash held in a stocks and shares ISA. If you withdraw current year's cash from one type, you are allowed to replace it in another type, eg, withdraw from a cash ISA, replace in an innovative finance ISA.

https://www.moneysavingexpert.com/savings/flexible-isas/