ISA matures into flexible one - Ability to withdraw and repay previous years subscriptions

dothenumbersaddup

My fixed ISA is due to mature this month, and one of the maturity options is for it to move into a flexible ISA.  It is made up of three past years subscriptions.  The key facts advises that the money can be withdrawn, and repaid in this tax year without loosing the ISA status, but it also advises that if the ISA is transferred it will not be possible to draw and repay the money without loosing the ISA status.  I want to be doubly sure that I would retain the ISA status, and want to double check that the move from the current fixed ISA to the flexible one does not of itself represent a transfer which means I can’t access the previous years subscriptions.  I may be overthinking this, but wondered if anyone else was thinking on the same wavelength? Thankyou

gravel_2

Not sure I follow. Flexibility is a feature any provider can offer. It enables withdrawal and re-deposit of amounts from ISAs within the same tax year without eroding your annual ISA allowance - e.g. you have £50k in an ISA you can withdraw 40k tomorrow and put it back in on 20 March 2025 without affecting anything.

If you transfer your ISA to another provider then the flexibility of that new ISA depends on that new provider's terms and conditions. What is key though is that if you flexibly withdraw money from current ISA, and then ISA transfer to a new provider, any money you have flexibly withdrawn (but not yet repaid into the ISA it came from) will not be able to be deposited back into any ISA and will lose its tax benefit.

dothenumbersaddup

gravel_2 said:

Not sure I follow. Flexibility is a feature any provider can offer. It enables withdrawal and re-deposit of amounts from ISAs within the same tax year without eroding your annual ISA allowance - e.g. you have £50k in an ISA you can withdraw 40k tomorrow and put it back in on 20 March 2025 without affecting anything.

If you transfer your ISA to another provider then the flexibility of that new ISA depends on that new provider's terms and conditions. What is key though is that if you flexibly withdraw money from current ISA, and then ISA transfer to a new provider, any money you have flexibly withdrawn (but not yet repaid into the ISA it came from) will not be able to be deposited back into any ISA and will lose its tax benefit.

Thanks gravel, unhelpfully the key facts statement refers to it being possible to withdraw and repay in the year - ‘most of the time’ hence me wanting to be doubly sure (virgin money flexible isa issue 2)My worry was that the previous fix maturing and the move into the flexible product would in some way invalidate the previous years subscriptions being eligible to be accessed flexibly. 

Catplan

I think they mean if your transferred to the flexible isa and withdraw say 10k then transfer to another flexible isa you have lost the ability to pay the 10k back, you’d need to do that prior to transferring. You can only pay it back into the flexible isa it came from.

eskbanker

dothenumbersaddup said:

gravel_2 said:

Not sure I follow. Flexibility is a feature any provider can offer. It enables withdrawal and re-deposit of amounts from ISAs within the same tax year without eroding your annual ISA allowance - e.g. you have £50k in an ISA you can withdraw 40k tomorrow and put it back in on 20 March 2025 without affecting anything.

If you transfer your ISA to another provider then the flexibility of that new ISA depends on that new provider's terms and conditions. What is key though is that if you flexibly withdraw money from current ISA, and then ISA transfer to a new provider, any money you have flexibly withdrawn (but not yet repaid into the ISA it came from) will not be able to be deposited back into any ISA and will lose its tax benefit.

Thanks gravel, unhelpfully the key facts statement refers to it being possible to withdraw and repay in the year - ‘most of the time’ hence me wanting to be doubly sure (virgin money flexible isa issue 2)My worry was that the previous fix maturing and the move into the flexible product would in some way invalidate the previous years subscriptions being eligible to be accessed flexibly. 

I can't find a product with that name on their site (although think they do have some unintuitive alternative navigation routes somewhere), are you able to share a link to it, or at least a copy/paste of the exact wording used?