Flexible ISA / putting money back in after withdrawing?

andy2017

The OP didn't state whether they opened a new ISA in the current 2024-2025 year.  If they did put £20k in a new ISA for 2024-2025, does that affect whether they can replenish their 2022-2023 ISA?

masonic

andy2017 said:

The OP didn't state whether they opened a new ISA in the current 2024-2025 year.  If they did put £20k in a new ISA for 2024-2025, does that affect whether they can replenish their 2022-2023 ISA?

ISA flexibility is local to the account providing it. Nothing you do elsewhere matters to this assuming the original subscriptions were valid.

cearball

Bumping this as I have a similar question.

I am not going to save 20K this tax year (ISA) allowance.

But if I can get 20K into that ISA before APRIl 5 th then withdraw it a few weeks later I keep that tax free allowance of 20K forever. 

Plus I now have 20K allowance for the new tax year. 

I think that's how it works

🤔

So I can now redeposit 40K tax free within the new tax year correct?

easyasonetwothree

cearball said:

Bumping this as I have a similar question.

I am not going to save 20K this tax year (ISA) allowance.

But if I can get 20K into that ISA before APRIl 5 th then withdraw it a few weeks later I keep that tax free allowance of 20K forever. 

Plus I now have 20K allowance for the new tax year. 

I think that's how it works

🤔

So I can now redeposit 40K tax free within the new tax year correct?

Yep, as long as you replace whatever you've withdrawn in to the same ISA and within the same tax year, and make sure the ISA is definitely flexible!

slinger2

cearball said:

Bumping this as I have a similar question.

I am not going to save 20K this tax year (ISA) allowance.

But if I can get 20K into that ISA before APRIl 5 th then withdraw it a few weeks later I keep that tax free allowance of 20K forever. 

Plus I now have 20K allowance for the new tax year. 

I think that's how it works

🤔

So I can now redeposit 40K tax free within the new tax year correct?

Yes, you can pay in £20k of new money and also "replace" the £20k (as long as you withdrew it from a flexible ISA). The replacement £20k would need to go back into the ISA you withdrew it from.

However you don't necessarily "keep that tax free allowance of 20K forever." You'd need to replace the £20k before the end of the tax year, otherwise that allowance is then lost forever.

cearball

slinger2 said:

cearball said:

Bumping this as I have a similar question.

I am not going to save 20K this tax year (ISA) allowance.

But if I can get 20K into that ISA before APRIl 5 th then withdraw it a few weeks later I keep that tax free allowance of 20K forever. 

Plus I now have 20K allowance for the new tax year. 

I think that's how it works

🤔

So I can now redeposit 40K tax free within the new tax year correct?

Yes, you can pay in £20k of new money and also "replace" the £20k (as long as you withdrew it from a flexible ISA). The replacement £20k would need to go back into the ISA you withdrew it from.

However you don't necessarily "keep that tax free allowance of 20K forever." You'd need to replace the £20k before the end of the tax year, otherwise that allowance is then lost forever.

This is important. 

I was thinking I was missing out on yearly allowances & the opportunity of accumulating tax free allowances over a number of years. Essentially growing a potential tax free pot.

It sounded too good to be true.

I of course missed this