ISA allowance if withdrawing cash

kimwp

Hi all. If I have a flexible cash ISA and I have put £20k into it in this cash year. Can I withdraw, say, £5k and put it in a stocks and shares ISA within this tax year?

Or alternatively close the cash ISA and put the whole £20k in a stocks and shares ISA?

slinger2

kimwp said:

Hi all. If I have a flexible cash ISA and I have put £20k into it in this cash year. Can I withdraw, say, £5k and put it in a stocks and shares ISA within this tax year?

Or alternatively close the cash ISA and put the whole £20k in a stocks and shares ISA?

no. not under the new rules.

Ayr_Rage

No to the first part.

Alternatively, open a S&S ISA and TRANSFER the Cash ISA into that.

PRAISETHESUN

With flexible ISAs, withdrawals must be re-deposited back into the same ISA to avoid them counting towards your ISA limit again. You can transfer the money between ISAs as mentioned above though.

kimwp

Thanks all. There does seem to be a way to reset the ISA allowance by withdrawing from a flexible ISA before transferring it (according to the AJ bell guidance).

masonic

kimwp said:

Thanks all. There does seem to be a way to reset the ISA allowance by withdrawing from a flexible ISA before transferring it (according to the AJ bell guidance).

No, this advice is out of date. You can use a partial ISA transfer to move money, but anything flexibly withdrawn can only be replaced in the original ISA as of 6th April 2024.

kimwp

masonic said:

kimwp said:

Thanks all. There does seem to be a way to reset the ISA allowance by withdrawing from a flexible ISA before transferring it (according to the AJ bell guidance).

No, this advice is out of date. You can use a partial ISA transfer to move money, but anything flexibly withdrawn can only be replaced in the original ISA as of 6th April 2024.

Ah brill, thank you