Principality Online Bonus ISA Issue 4 withdrawal

where_are_we

POBISA issue 4 was opened in Tax year 23-24 with no new money and funded by an ISA transfer in 23-24. This is a "flexible ISA" and I intend to make a withdrawal soon. I believe I can replace this withdrawal any time this tax year 24-25 without the replacement contibuting to my £20k ISA allowance. I may want to contribute new 24-25 money to this ISA. Will there be an order to contributions? ie. any money I put in this tax year will first count towards my replacement of the withdrawal - then once this has been exceeded new  deposits become part of my 24-25 ISA £20K ISA allowance?

eskbanker

Yes, as you suspected:

Where a withdrawal is made, any subsequent subscriptions in the same tax year that would otherwise count towards the subscription limit will do so only to the to the extent that previously withdrawn amounts have been fully replaced.

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

where_are_we

I made my first withdrawal from Principality OBISA4 late morning and was satisfied to see money in nominated account just after 4pm same day. This account will be one of my easy access options once Santander reduce their Easy Access Saver @5.2% interest rate. With high interest rates, flexible cash ISA`s will be useful for those with substantial cash savings as an easy access choice if you want to stay below the £1000 threshold for basic rate tax payers.