Flexible cash ISA

dooshyantbee

Hi all,

I currently have £50,000 in a flexible cash ISA.

If I withdraw £35,000 during this tax year, can I subsequently re-contribute the full £35,000 or only this year's tax free allowance of £20,000?

Many thanks
Dooshy

cricidmuslibale

dooshyantbee said:

Hi all,

I currently have £50,000 in a flexible cash ISA.

If I withdraw £35,000 during this tax year, can I subsequently re-contribute the full £35,000 or only this year's tax free allowance of £20,000?

Many thanks
Dooshy

Because the cash ISA is flexible you can both re-contribute the full £35,000 and add up to £20,000 on top of that during this tax year! The re-contribution and subsequent subscription(s) up to £20k can be made to either the flexible cash ISA you refer to or (an)other one(s), provided that this is all done within the current tax year (up to April 5 2025).

(Any re-contributions made to ISA funds from a previous tax year have to be made into the same ISA from which the withdrawal(s) took place!)

slinger2

Worth knowing that "Flexible ISA withdrawals are deemed to be firstly of current year subscriptions, and secondly of previous year funds. Replacements are deemed to be firstly of previous year funds, and secondly of current year subscriptions."

So when you start adding that money back in, to start with it'll be the previous year funds you took out and, when that's used up, it'll be current year subscriptions