Partial ISA transfers and flexibility

Rockula

Hope someone can help with this. 

I have a flexible Cash ISA with YBS containing only old money, no current year deposits. A few months ago I opened a new Cash ISA with another provider (starting with zero balance) and requested a partial transfer out from YBS of £500 which apparently completed successfully.

As I understand it, I can still deposit 20k into the YBS ISA before the end of the current tax year, however YBS show my remaining allowance as £20500, which implies I can also replace the £500 which was transferred. Does this sound correct? I would have imagined that this would only be possible if I had WITHDRAWN the £500 myself and not requested the transfer out via the new provider.

eskbanker

Doesn't sound correct to me, no - you can't start with £500 of prior year money in one ISA and end the year with that same amount in each of two separate ones!

Rockula

eskbanker said:

Doesn't sound correct to me, no - you can't start with £500 of prior year money in one ISA and end the year with that same amount in each of two separate ones!

Thanks for this! That’s exactly the way I see it too. I’ll drop YBS a message to check what they say as well.