Closed ISA: can I open a new one?

Car_54

Apologies if this has been covered before: I can't find a clear answer anywhere.

At the beginning of this tax year, I paid £20,000 into an existing cash ISA.

Later in the year, I withdrew all funds and closed the account.

Can I legally start a new cash ISA in the current tax year? Or a stocks and shares ISA?

slinger2

You've used your allowance 24/25 and can't add any new money to any ISA.

Ayr_Rage

You have used your annual allowance so you cannot fund a new ISA of any sorts until 6 April 2025.

Kim_13

No, once you have made the subscription you can only transfer it elsewhere using the ISA transfer process or flexibly withdraw it and put it back later, if the provider allows this.

A flexible allowance doesn’t carry over from one ISA to another, so you would have lost any flexible allowance you may have had at the point of closing the ISA.

There is a short window within which an ISA subscription wouldn’t be reported (14 days cooling off) and you would have the £20,000 available again, but only if the provider processes it in this way. It doesn’t sound like the closure of your ISA falls into this, as it reads that you manually removed the funds yourself rather than asking to close your ISA using this clause.

Car_54

Thanks everyone. That's what I suspected.