Vanguard ISA allowance confusion

n3ophyte

I had £30,000 in my Vanguard ISA during 2022-2023. Throughout this time the account stated I had used my £30,000 2022/23 allowance. Fair enough.

I withdrew the £30,000 a couple of months ago and the allowance immediately increased to £30,000 again. All good.

Now we’ve hit April 6th 2023 my allowance has dropped to £20000

As this is a flexible ISA I assumed I would be able to put back the £30,000 I’d taken out and ad a further £20,000 this year to total £50,000.

Seems I was wrong. Should I have left the £30,000 in the ISA until after April 6th to preserve my allowance from previous years?

fabsaver

A flexible ISA allows you to withdraw money and replace it within the same tax year.

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

The £30,000 withdrawn during 2022-23 should have been paid back into the account by 5th April 2023, in order to preserve the ISA status. You could then have withdrawn it again today.

https://www.vanguardinvestor.co.uk/need-help/answer/is-the-vanguard-isa-a-flexible-isa?intcmpgn=landing_help_topics_link

Unfortunately the ISA status of that money has been lost now and I don't believe there is any way to get it back.

n3ophyte

Thanks for confirming fabsaver. Seems every financial assumption I make is incorrect these days

Albermarle

n3ophyte said:

Thanks for confirming fabsaver. Seems every financial assumption I make is incorrect these days

It would probably  pay to read this forum regularly .

n3ophyte

Albermarle said:

n3ophyte said:

Thanks for confirming fabsaver. Seems every financial assumption I make is incorrect these days

It would probably  pay to read this forum regularly .

I do. Every day in fact for the last 2 years

I still fall into every trap. Like prematurely triggering my MPAA because Vanguard don’t do small pot withdrawals from their SIPs.

Alexland

n3ophyte said:

I still fall into every trap. Like prematurely triggering my MPAA because Vanguard don’t do small pot withdrawals from their SIPs.

I fall into the traps of knowing way too much about things I didn't need to know and having too much admin from being a total sucker for cashback incentives. Just wasted the last 5 years thinking hard about the LTA for nothing.

Albermarle

n3ophyte said:

Albermarle said:

n3ophyte said:

Thanks for confirming fabsaver. Seems every financial assumption I make is incorrect these days

It would probably  pay to read this forum regularly .

I do. Every day in fact for the last 2 years

I still fall into every trap. Like prematurely triggering my MPAA because Vanguard don’t do small pot withdrawals from their SIPs.

To be fair it is not very widely known, even on the pensions forum, that some providers ( even well known ones )  are not set up for withdrawals under the small pot rule.