Maximising allowance across ISAs

w00519773

I have opened a flexible cash isa with Trading 212.  I have transferred (and closed) my old cash ISA.  I also have a stocks and shares isa, which I contribute at £300 PCM and a lifetime ISA at £25 PCM.  I am trying to understand if I can do this:

So far I have contributed £1500 to my stocks and shares isa (5*300) and £125 (5*25) to my Lifetime ISA and therefore I can contribute a further 18375 (20000-1500-125) across the three ISAs this year.

I am thinking about putting 18375 into the cash ISA and then withdraw £325 each month (before the contributions are made to my Stocks and shares ISA and lifetime ISA (to ensure the value of the contributions across the three ISAs does not exceed £20,000.

Is this approach permitted?

InvesterJones

If the MSE guide is right: https://www.moneysavingexpert.com/savings/flexible-isas/

then no, you need to replace the withdrawn cash in the same flexible ISA

jimjames

No it's not permitted. You also need to look at the allowances, the £20k can't be split across in any proportion, you can only add £4000 to LISA which you seem to be way under. Surely if you have the funds available it would make sense to just pay them into the relevant places now?

slinger2

w00519773 said:

I have opened a flexible cash isa with Trading 212.  I have transferred (and closed) my old cash ISA.  I also have a stocks and shares isa, which I contribute at £300 PCM and a lifetime ISA at £25 PCM.  I am trying to understand if I can do this:

So far I have contributed £1500 to my stocks and shares isa (5*300) and £125 (5*25) to my Lifetime ISA and therefore I can contribute a further 18375 (20000-1500-125) across the three ISAs this year.

I am thinking about putting 18375 into the cash ISA and then withdraw £325 each month (before the contributions are made to my Stocks and shares ISA and lifetime ISA (to ensure the value of the contributions across the three ISAs does not exceed £20,000.

Is this approach permitted?

No. Since 6 Apr 2024 this is not allowed:

"Any replacement subscription may be made only to the account from which the withdrawal of a cash amount it is replacing was made." (https://www.legislation.gov.uk/uksi/1998/1870/regulation/5DDB/2024-04-06 Paragraph (3))

You'd have to do it via "transfers" which may not be practicle.

w00519773

jimjames said:

No it's not permitted. You also need to look at the allowances, the £20k can't be split across in any proportion, you can only add £4000 to LISA which you seem to be way under. Surely if you have the funds available it would make sense to just pay them into the relevant places now?

Thanks.  My calculations took this into consideration though.  I should have made that clear.