ISA confusion

rusty69

Sorry if this has been answered before.

I have a Nationwide flexible cash isa which I have paid previous years contributions back into in this tax year. I have also opened another cash ISA with a different provider this tax year.

I would like to open a nationwide 1 year fixed rate ISA this tax year as well, and transfer the money that I am eligible to put back into the flexible ISA into it.

Have I broken any rules, and is what I am suggesting ok to do without breaking any rules?

Thanks

eskbanker

rusty69 said:

I have a Nationwide flexible cash isa which I have paid previous years contributions back into in this tax year.

Do you mean that you've withdrawn money that was in the account at the start of the tax year, and then redeposited it, without contributing any new money during this tax year?

rusty69 said:

I would like to open a nationwide 1 year fixed rate ISA this tax year as well, and transfer the money that I am eligible to put back into the flexible ISA into it.

This suggests that the previous years' money hasn't been repaid into the flexible ISA, or perhaps some of it has?  Anyway, the bottom line is that, in order for that money not to be treated as a current year deposit, it would need to be repaid into the flexible ISA before arranging a transfer from that one into a new one, as you've already paid into another cash ISA this year.

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.

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

rusty69

eskbanker said:

rusty69 said:

I have a Nationwide flexible cash isa which I have paid previous years contributions back into in this tax year.

Do you mean that you've withdrawn money that was in the account at the start of the tax year, and then redeposited it, without contributing any new money during this tax year?

rusty69 said:

I would like to open a nationwide 1 year fixed rate ISA this tax year as well, and transfer the money that I am eligible to put back into the flexible ISA into it.

This suggests that the previous years' money hasn't been repaid into the flexible ISA, or perhaps some of it has?  Anyway, the bottom line is that, in order for that money not to be treated as a current year deposit, it would need to be repaid into the flexible ISA before arranging a transfer from that one into a new one, as you've already paid into another cash ISA this year.

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.

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

I have withdrawn the money from the flexible ISA this tax year, but can repay it back in (it is not currently in an ISA account). I have also opened an ISA with another provider this tax year.

I want to pay the money back into the flexible ISA and then open a  1 year ISA and transfer the flexible ISA money into that.

eskbanker

rusty69 said:
I have withdrawn the money from the flexible ISA this tax year, but can repay it back in (it is not currently in an ISA account). I have also opened an ISA with another provider this tax year.

I want to pay the money back into the flexible ISA and then open a  1 year ISA and transfer the flexible ISA money into that.

In which case, yes, once the prior year money has been returned to the flexible ISA, it can be transferred to another cash ISA without compromising what you're doing with your current year money (which I presume is in the other provider's account that you opened).  The key thing is generally that all current year money is in the same ISA, but prior year money can be spread around as much as you like.

rusty69

eskbanker said:

rusty69 said:
I have withdrawn the money from the flexible ISA this tax year, but can repay it back in (it is not currently in an ISA account). I have also opened an ISA with another provider this tax year.

I want to pay the money back into the flexible ISA and then open a  1 year ISA and transfer the flexible ISA money into that.

In which case, yes, once the prior year money has been returned to the flexible ISA, it can be transferred to another cash ISA without compromising what you're doing with your current year money (which I presume is in the other provider's account that you opened).  The key thing is generally that all current year money is in the same ISA, but prior year money can be spread around as much as you like.

Thanks very much for your help.