ISA transfer from a flexible ISA where money has been withdrawn but not replaced

SonOfPearl

I have a Nationwide ISA which is flexible and I have withdrawn all but £1 of the balance (which was about £35k) into a regular savings account. If I initiate a transfer of this ISA from Nationwide to a different flexible ISA with Skipton, will I be allowed to replace the previously withdrawn funds from Nationwide into the new Skipton ISA? Thanks.

eskbanker

No, you need to replace the withdrawn funds into the Nationwide ISA before transferring it.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#f-isa

Replacement of flexible ISA previous year funds must be made to the account from which the withdrawal was made, and in the same tax year.

SonOfPearl

eskbanker said:

No, you need to replace the withdrawn funds into the Nationwide ISA before transferring it.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#f-isa

Replacement of flexible ISA previous year funds must be made to the account from which the withdrawal was made, and in the same tax year.

Many thanks! 

masonic

If it helps it's just the previous year money that needs to be replaced. Any current year money is added back onto your £20k annual allowance and can be paid into Skipton post-transfer.