Flexible ISA different provider question

dt17634

Hello,

Please can I ask if you can you take money out of a flexible ISA (either a cash isa or a stocks & shares isa) with one provider and put that money into a different provider's cash isa / stocks and shares isa? I know this needs to be done in the same tax year that it was deposited, but I'm not 100% sure on the provider part.

I have read that you can only put the money back into the same account that you took the money out from, but I have also read that you can move the money to a different provider.

Given the new rule introduced for the 24/25 tax year that you can deposit into multiple ISAs of the same type, it is not clear what is correct.

Thank you.

eskbanker

While some of the 2024/25 changes loosened restrictions, it was the other way round with flexible ISAs, so withdrawals must now be replaced into the same ISA from which they were withdrawn, whereas previously it was possible to put them elsewhere.

Chapter and verse on this recent thread:

https://forums.moneysavingexpert.com/discussion/6572320/flexible-cash-isas

dt17634

Thank you. 

If I put £20k into provider A, S&S ISA, and it was left as cash, then a few months later I want to withdraw that money and deposit it into provider B S&S ISA, is that allowed? I don't mind about the £20k limit because I wouldn't have used it in provider A because it was withdrawn within the same tax year that it was deposited. 

Thanks

eskbanker

dt17634 said:

If I put £20k into provider A, S&S ISA, and it was left as cash, then a few months later I want to withdraw that money and deposit it into provider B S&S ISA, is that allowed? I don't mind about the £20k limit because I didn't have used it in provider A because it was withdrawn within the save tax year that it was deposited. 

Leaving money as cash in a S&S ISA doesn't change anything, once it's been deposited into the ISA then that's used your annual allowance.  You can move it from A to B by using B's ISA transfer procedure though, rather than withdrawing and redepositing....

dt17634

@eskbanker appreciated. Thank you. Exactly what I was looking for.