Flexible Cash ISA plus Stocks & Shares ISA

eskbanker

surreysaver said:
So all legit, despite the veiled accusations from @Alexland !

To be fair, your subsequent clarifications did paint a slightly different picture from what you first said, which was:

surreysaver said:

Obviously by the end of the tax year the result of a Flexible Cash ISA couldn't be more than £14k of new money, but could I pay in £20k of new money into the Flexible Cash ISA as long as at least £6k of it is removed by the end of the tax year?

which doesn't really convey the 'no more than £20K at any time' that you said in a later post:

surreysaver said:
At no time was I going to have more than £20k subscribed at any one time

surreysaver

eskbanker said:

surreysaver said:
So all legit, despite the veiled accusations from @Alexland !

To be fair, your subsequent clarifications did paint a slightly different picture from what you first said, which was:

surreysaver said:

Obviously by the end of the tax year the result of a Flexible Cash ISA couldn't be more than £14k of new money, but could I pay in £20k of new money into the Flexible Cash ISA as long as at least £6k of it is removed by the end of the tax year?

which doesn't really convey the 'no more than £20K at any time' that you said in a later post:

surreysaver said:
At no time was I going to have more than £20k subscribed at any one time

Obviously I didn't convey my full intentions!

hjghg5

Sorry to hijack, I've read through this thread and the link and I want to check that my understanding is correct.  I haven't used cash ISAs for years and have only started looking at them again with rates rising.

I have 3 ISAs for this year.

1. S&S LISA - I pay £100 per month into this (annual total £1200)

2. S&S ISA - I pay £450 per month into this (annual total £5400)

These are both set up as direct debits.

3. Flexible Cash ISA.

I currently have a decent amount of cash savings because I intend to pay off all or most of my mortgage when my current fixed rate expires at the end of September.  Because I'm a higher rate taxpayer I want to move some of this into an ISA to minimise the amount of interest I have to pay tax on.  My 22/23 ISA money is in a different account.

My original assumption had been that I would only be able to put £13400 into the Cash ISA for a total of £20,000, and that when I withdraw the money in September/October I would need to replace it into the same account it was originally taken from.  However, reading through the link it looks like I can replace money withdrawn from the Cash ISA by paying it into a S&S ISA, it's just that I can't put it back into a different Cash ISA.

So, if I have 6 x £550 which will be paid in after the cash withdrawal I could count this as repaying withdrawn money rather than new money, even though it's going into different accounts?

Meaning that I could pay 6 x £550 (£3300) for my regular investments, and then add up to £16700 to the cash ISA between now and September, withdraw all or most of the £16700 cash and then continue with my regular payments for the rest of the year (plus some cash back into the same cash ISA that I withdrew from) as long as I don't exceed £20k at any point.  

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jimjames

Yes you can do that. As long as the cash ISA plus other ISAs total £20k or less by the end of the tax year then you'll be in accordance with HMRC rules

hjghg5

Perfect, thanks!