Flexible ISA rules....

princess911

Quick question. 

I've made £20k contribution to a cash isa in this current tax year. The entire balance is now £55k. 

If I choose to withdraw £45k, would I be able to repay the entire £45k back into the ISA, before the end of the tax year, or can I only return the original £20k? 

Not quite sure about this one. 

masonic

Yes, you can return it all, assuming the ISA is flexible (not all are).

slinger2

You could replace the entire £45k.

princess911

Thank you both for your confirmation. Thats great news! 

Brunokid

masonic said:

Yes, you can return it all, assuming the ISA is flexible (not all are).

Is this correct?

I thought that once you had withdrawn it, you could only but 20K back in the same year.
The only way to secure a withdrawal would to do an ISA transfer

Have the rules changed?

eskbanker

Brunokid said:

masonic said:

Yes, you can return it all, assuming the ISA is flexible (not all are).

Is this correct?

I thought that once you had withdrawn it, you could only but 20K back in the same year.
The only way to secure a withdrawal would to do an ISA transfer

Have the rules changed?

The rules have changed recently, but not that aspect, which has remained constant throughout, i.e. there is no such restriction about only redepositing an arbitrary amount, so @masonic's guidance is correct and OP can withdraw £45K and replace all of it by the end of the tax year.

masonic

Brunokid said:

masonic said:

Yes, you can return it all, assuming the ISA is flexible (not all are).

Is this correct?

I thought that once you had withdrawn it, you could only but 20K back in the same year.
The only way to secure a withdrawal would to do an ISA transfer

Have the rules changed?

If you do an ISA transfer, then that would not result in a withdrawal, the money would remain wrapped in an ISA. The rules have always permitted the full balance that has been flexibly withdrawn to be replaced into the same ISA within the same tax year. This is still the case.

If you transfer after making a flexible withdrawal it used to be true that only the current year withdrawals could be replaced in your new ISA (this could be up to £20k or zero, depending on what had been subscribed to that ISA in the current tax year). With the recent changes to the rules, it may now be the case that none of the flexibly withdrawn money is allowed to be replaced in the new ISA. The new rules are unclear on this point.

Brunokid

So let me get this right......
I withdrew £105K April 17th from my flexible ISA  to help buy a house.
We plan to sell our current house (which are still living in) in the next 6 months.
Can I re-deposit the £105K plus this years allowance (£20K) into the same account?

eskbanker

Brunokid said:

So let me get this right......
I withdrew £105K April 17th from my flexible ISA  to help buy a house.
We plan to sell our current house (which are still living in) in the next 6 months.
Can I re-deposit the £105K plus this years allowance (£20K) into the same account?

Yes, provided you do so by 5 April 2025.

masonic

Have you not checked how much your ISA provider says you have remaining of your allowance this year? Most show this online.

Brunokid

masonic said:

Have you not checked how much your ISA provider says you have remaining of your allowance this year? Most show this online.

Yes, 20K left