Transferring previous years Cash ISAs into a Flexible ISA

FloridaJim

I have a couple of previous years fixed rate cash ISAs where the term is coming to an end in November '24 (approx £44k inc interest earned). I would normally reinvest this in new fixed rate 2 or 3 year cash ISAs but want to use the money to support buying a new home around that time.

I plan to open a new '24-'25 Flexible ISA that accepts transfers in April '24 and invest the full £20k immediately (from other savings). Then in November transfer the 'old' ISAs into the new Flexible ISA.

I would then withdraw (but not close the account) almost all the total amount (approx £65k) to support the funding of the new property and then put the money back into the '24-'25 Flexible ISA when I sell my current home (and before April '25). By doing this I would, hopefully, keep all the money in a 'tax-free interest' bubble.

I would be grateful if anyone could offer any insight as to whether this is allowed please?

eskbanker

That all sounds viable (provided you don't live in Florida!).

FloridaJim

No, just a username! Wish I did though!

badger09

A possible flaw in your plan would be if your current home didn’t sell as quickly as you hope. November to end of March isn’t very long in which to find a house, find a buyer & complete on your sale. Especially if there are chains involved.  

FloridaJim

badger09 said:

A possible flaw in your plan would be if your current home didn’t sell as quickly as you hope. November to end of March isn’t very long in which to find a house, find a buyer & complete on your sale. Especially if there are chains involved.  

Very true, it could get a bit tight. Thanks for raising that. My thinking is to buy a new build using the Flexible ISA and other non-ISA savings so I have a fair idea of when the new house will be completed, get mine on the market a few months before that so the sale can coincide with the new build being ready. Would only need the cash ISA (and the rest of the savings) if I wasn’t able to get all the timings to work out and had to hold onto my current house for a month or two after moving to the new house.