Flexible ISAs: Current year subscriptions can no longer be replaced in a different ISA

badmemory

Be careful what your bank shows on their system.  A couple of weeks ago I transferred from one ISA at the end of its fixed period when the rate sank to another with the same bank & they are reporting it as if it is new money.  So I only have £8k left of my £20k allowance.

gravel_2

badmemory said:

Be careful what your bank shows on their system.  A couple of weeks ago I transferred from one ISA at the end of its fixed period when the rate sank to another with the same bank & they are reporting it as if it is new money.  So I only have £8k left of my £20k allowance.

Which bank(s)? Did you use the normal transfer route?

badmemory

gravel_2 said:

badmemory said:

Be careful what your bank shows on their system.  A couple of weeks ago I transferred from one ISA at the end of its fixed period when the rate sank to another with the same bank & they are reporting it as if it is new money.  So I only have £8k left of my £20k allowance.

Which bank(s)? Did you use the normal transfer route?

Both with the same bank & an online transfer.

orange-juice

Just trying to wrap my head round this. Does this mean that this bit is no longer valid and need to be updated ?

You must replace the money in the same ISA

The key rule is you must replace the money in the same ISA account you took it out from, though you are allowed to withdraw from a flexible cash ISA and replace it in a flexible stocks and shares ISA or flexible innovate finance ISA. 

https://www.moneysavingexpert.com/savings/flexible-isas/#what

gravel_2

orange-juice said:

Just trying to wrap my head round this. Does this mean that this bit is no longer valid and need to be updated ?

You must replace the money in the same ISA

The key rule is you must replace the money in the same ISA account you took it out from, though you are allowed to withdraw from a flexible cash ISA and replace it in a flexible stocks and shares ISA or flexible innovate finance ISA. 

https://www.moneysavingexpert.com/savings/flexible-isas/#what

Check the date of the MSE page and the date of the gov guidance.

masonic

orange-juice said:

Just trying to wrap my head round this. Does this mean that this bit is no longer valid and need to be updated ?

You must replace the money in the same ISA

The key rule is you must replace the money in the same ISA account you took it out from, though you are allowed to withdraw from a flexible cash ISA and replace it in a flexible stocks and shares ISA or flexible innovate finance ISA. 

https://www.moneysavingexpert.com/savings/flexible-isas/#what

Yes, but it was misleading even prior to the 30th April, as only the source account needed to be flexible. Now everything from the comma onward needs to be removed.

badger09

badmemory said:

gravel_2 said:

badmemory said:

Be careful what your bank shows on their system.  A couple of weeks ago I transferred from one ISA at the end of its fixed period when the rate sank to another with the same bank & they are reporting it as if it is new money.  So I only have £8k left of my £20k allowance.

Which bank(s)? Did you use the normal transfer route?

Both with the same bank & an online transfer.

Are you sure the particular bank allows a proper ISA transfer by that method?Just because they offer the mechanism to move money from one ISA to another, doesn’t necessarily mean it’s recognised as a ISA transfer.  

MSE_James

Thank you @masonic, @eskbanker and everyone else - I have brought this thread to the attention of colleagues here. 

slinger2

Personally I've already broken the new rule, before I even knew about it. I'd parked £10k in a Chip flexi easy access ISA (the other £10k of my allowance went elsewhere). At the end of last week I withdrew £2k and paid it into a Shawbrook fixed rate ISA. Just wondering what to do with other £8k. Might as well be hung for a sheep as for a lamb, as the old saying goes.

FrugalFredi

Possibly another rule breaker... Based on the original guidance, my OH planned to drip feed £20k into S&S ISA from flexible cash ISA.

6 April: Opened and funded flexible cash ISA with £20k. 

30 April: Withdrew £2k from cash ISA and paid into new S&S ISA.

Plan now on hold. We'll wait to see if there's any further clarification allowing her to continue.

Astonished to see rules changing mid year. Hopefully any perceived breach will be treated sympathetically.