Virgin Money Flexible ISA 9 September 2022 at 10:45AM in ISAs & tax-free savings 8 replies 615 views

RG2015

This is probably obvious but I am not used to dealing with Flexible ISAs

I subscribed £10k to a Virgin Money fixed rate ISA in December 2020 which matured in October 2021. The account was automatically converted into an easy access flexible ISA and I then withdrew all but £1.

I replaced the £10k on 4th April 2022 and then withdrew it on 7th April 2022 leaving £1 in the account. This I believe preserves the tax free status and my 2022/2023 £20k allowance.

I would just like confirmation that I can continue to move up to £10k in and out of the account this tax year without affecting either its tax free status or my 2022/2023 £20k allowance in any way.

 

masonic

Yes you can, and your clue is that you should see your remaining allowance is >£20,000 if VM shows this anywhere.

RG2015

masonic said:

Yes you can, and your clue is that you should see your remaining allowance is >£20,000 if VM shows this anywhere.

Thanks.

I cannot see anywhere prominent on VM, although I have seen this elsewhere, such as on my M&G ISA.

I assume that this only applies to each individual bank/FI as VM or M&G would not know if I had subscribed elsewhere in the current tax year. 

masonic

RG2015 said:

masonic said:

Yes you can, and your clue is that you should see your remaining allowance is >£20,000 if VM shows this anywhere.

Thanks.

I cannot see anywhere prominent on VM, although I have seen this elsewhere, such as on my M&G ISA.

I assume that this only applies to each individual bank/FI as VM or M&G would not know if I had subscribed elsewhere in the current tax year. 

That's right, each provider will assume you're using them exclusively for your ISA allowance - because we're all fiercely loyal and wouldn't contemplate choosing the products that suit us best from the whole marketplace

If there was a central repository of information about how much allowance had been used where, then it would be straightforward to allow us to spread our money between as many ISAs as we liked.

RG2015

The rate has now increased from 1.75% to 2.25%. This is my highest easy access account even with the VM M Plus linked saver increasing to 2.00%.

Unfortunately, this tax year is fine for my tax on interest limits with next year being my big concern. It just feels odd moving all my instant cash to an ISA not for tax purposes but just for the rate.

RG2015

masonic said:

Yes you can, and your clue is that you should see your remaining allowance is >£20,000 if VM shows this anywhere.

It looks like this is incorrect.

I subscribed to a new VM Exclusive fixed ISA in January which was not challenged.

Now they have rejected a transfer into the old easy access Flexible ISA saying that I have already put new money into another ISA in this tax year.

I have opened a new thread today asking if VM are actually correct and that my interpretation was incorrect.

eskbanker

RG2015 said:

masonic said:

Yes you can, and your clue is that you should see your remaining allowance is >£20,000 if VM shows this anywhere.

It looks like this is incorrect.

I subscribed to a new VM Exclusive fixed ISA in January which was not challenged.

Now they have rejected a transfer into the old easy access Flexible ISA saying that I have already put new money into another ISA in this tax year.

I have opened a new thread today asking if VM are actually correct and that my interpretation was incorrect.

I just responded on the other thread but don't recall seeing any reference to rejecting a transfer?  Do you literally mean an ISA transfer and if so, is it current year money (from where?) or prior year money?

RG2015

eskbanker said:

RG2015 said:

masonic said:

Yes you can, and your clue is that you should see your remaining allowance is >£20,000 if VM shows this anywhere.

It looks like this is incorrect.

I subscribed to a new VM Exclusive fixed ISA in January which was not challenged.

Now they have rejected a transfer into the old easy access Flexible ISA saying that I have already put new money into another ISA in this tax year.

I have opened a new thread today asking if VM are actually correct and that my interpretation was incorrect.

I just responded on the other thread but don't recall seeing any reference to rejecting a transfer?  Do you literally mean an ISA transfer and if so, is it current year money (from where?) or prior year money?

No, it wasn't an ISA Transfer just a normal payment in from my current account under the flexible ISA rules.

masonic

RG2015 said:

masonic said:

Yes you can, and your clue is that you should see your remaining allowance is >£20,000 if VM shows this anywhere.

It looks like this is incorrect.

I subscribed to a new VM Exclusive fixed ISA in January which was not challenged.

Now they have rejected a transfer into the old easy access Flexible ISA saying that I have already put new money into another ISA in this tax year.

I have opened a new thread today asking if VM are actually correct and that my interpretation was incorrect.

If the following statements are true, then Virgin is in the wrong and you should challenge it / raise a complaint:

• The easy access ISA is subject to ISA flexibility;
• You have, during the 2022/23 tax year, flexibly withdrawn a sum of money from this account; and
• You are now trying to make replacement subscriptions of no more than the sum flexibly withdrawn