Flexible ISA

Silversurfer60

I would be grateful if those more knowledgeable could confirm that my understanding of the flexible ISA rules is correct. 

My daughter has an off set mortgage with an interest rate at half a percent over base so currently 5.75%. I currently have a limited access ISA with Coventry. Can I open a new Coventry Flexible access ISA and deposit this years 20k, then move a sum from the Limited Access into it. I will then withdraw almost the full amount and lend this to her until March next year. At that point she will return the money and I will redeposit into the ISA. Is this plan within the ISA rules? 

slinger2

Isn't the current limited access ISA flexi? Also not sure why you'd put this year's £20k into a Cash ISA and then take it straight out. Why not give the money to her now and open an ISA next March when she gives it back? 

Silversurfer60

Yes I did think that after I had posted!! I’m not sure re Limited Access so it’ll check. There is probably no reason anyway why I can’t just open the flexi ISA and move some of the previous years cash into that before withdrawing.  Very impressed with Coventry BS they have been consistently good with their rates over the past few years
Have to say that I was totally unaware until reading something on this forum recently that previous years contributions could also be withdrawn from a flexible ISA