Transfer of flexible ISA and built up allowance

Jimmydao

Hello,i have a flexible ISA with 3 yrs built up allowance.I have paid in the 20k allowance this tax year.However i withdrew a portion of the total to start up an invest account with Trading 212.Ive now realised that i should have started investing using the Invest ISA to remove the capital gains tax charges.I have initiated a transfer of the remaining funds with my original ISA to the Trading 212 invest ISA.My question is,can i just add back the cash that i withdrew from the original flexible ISA,to the Trading 212 ISA,providing i dont go over the 3 yr built up allowance?.Or do i have to reinstate the lot to the original ISA and transfer it that way.Many thanks if you can help,as i cant find anything concrete in this matter

wmb194

Jimmydao said:

Hello, I have a flexible ISA with 3 yrs built up allowance. I have paid in the 20k allowance this tax year. However i withdrew a portion of the total to start up an invest account with Trading 212.

I've now realised that I should have started investing using the Invest ISA to remove the capital gains tax charges.

I have initiated a transfer of the remaining funds with my original ISA to the Trading 212 invest ISA.

My question is, can I just add back the cash that i withdrew from the original flexible ISA to the Trading 212 ISA providing I don't go over the 3 yr built up allowance? Or do i have to reinstate the lot to the original ISA and transfer it that way.

Many thanks if you can help as i cant find anything concrete in this matter

No, it has to go back to the original Isa. The rules changed this tax year to say that any money withdrawn flexibly can only be returned to that same Isa.

Jimmydao

I had a feeling this would be the case,thanks for comfirming it

slinger2

If you withdrew the money last tax year then it's lost from the ISA system. 

If it was this tax year then you could replace it into the original ISA and then transfer it to the T212 ISA.

Jimmydao

Well This is a turn up for the books…My transfer completed in just over a week,of what i had in my ISA,no problems.I didn`t manage to put the whole 3 yrs worth back in as it was invested in the 212 invest portfolio and i didnt want to lose out on possible gains  .Today i got a notification that the remaining amount (the difference that was transfered and my whole 3yrs allowance) can now be deposited via the Trading 212 ISA.So thats very good news indeed and seems to go against the grain of accepted knowledge on this subject.Not that im complaining.Must be because both ISA are flexible.