Withdrawal of funds from Flexible ISA and subsequent repayment.

jegs

A Flexible Cash ISA has £50,000 in total, invested in it, including the current years £20,000 allowance.
If £40,000 was withdrawn from this Flexible Cash ISA, in one withdrawal, could the full amount withdrawn, (£40,000).be repaid into the Cash ISA in one deposit later, within the current financial year ?

slinger2

jegs said:

A Flexible Cash ISA has £50,000 in total, invested in it, including the current years £20,000 allowance.
If £40,000 was withdrawn from this Flexible Cash ISA, in one withdrawal, could the full amount withdrawn, (£40,000).be repaid into the Cash ISA in one deposit later, within the current financial year ?

Yes. Doesn't have to be one withdrawal/deposit.

jegs

Hi....Thanks for  your reply.

The point I am trying to make, is that the fact is, that I will have withdrawn £40,000 which is more than the annual allowance, which I have already invested.

I wanted to ensure that the amount that was withdrawn, even though above the annual allowance amount, of £20,000, could easily be returned without problem or penalty.

Regards.

slinger2

jegs said:

Hi....Thanks for  your reply.

The point I am trying to make, is that the fact is, that I will have withdrawn £40,000 which is more than the annual allowance, which I have already invested.

I wanted to ensure that the amount that was withdrawn, even though above the annual allowance amount, of £20,000, could easily be returned without problem or penalty.

Regards.

Withdrawals/replacements from flexible Cash ISAs are not restricted to "new" money. You can withdraw/replace "old" money too, even interest. Make sure you replace it in the same account and in the same tax year. In theory there could be penalties for doing all this but that would be mostly for fixed interest ISAs. Read the T&Cs.

xylophone

https://www.coventrybuildingsociety.co.uk/member/help/savings/my-quick-guide-to-isas/learn-about-easy-access-isas.html