How do Flexible (Easy Access) ISA's work with the New Rules (24/25) ?

masonic

If you subscribe to a cash ISA, withdraw everything from it and transfer the money to a second ISA, then that would in any event be covered by the "investor error - self transfer" clause in the HMRC guidance and would not have any consequences. You can only get away with this once per tax year.

As things stand, you have two ISAs where you could make replacement subscriptions. Providing the total amount you originally paid in adds up to less than the annual allowance, you can still replace everything you withdrew (to the same ISA).

James-H_4

Oh I think I get it now. So, for example, if I have two flexible Cash ISAs and put £10k in each this tax year (reaching the £20k limit), but withdrew from them, I could only put back up to £10k in each.

The thing I can’t do is move £10k from one to the other, ending up with one at £0 and one at £20k.

masonic

James-H_4 said:

Oh I think I get it now. So, for example, if I have two flexible Cash ISAs and put £10k in each this tax year (reaching the £20k limit), but withdrew from them, I could only put back up to £10k in each.

The thing I can’t do is move £10k from one to the other, ending up with one at £0 and one at £20k.

Yes, the intention seems to be that each current year ISA has a high water mark, and the total of these needs to be within the annual allowance.