How flexible is a Flexible ISA?

heterodyne76

I have a Flexible ISA with Zopa, and I understand it means that if I withdraw some of my money, I can deposit it back into the same ISA without it reducing my annual allowance twice.

I just wanted to clarify if that also applies to 'old' money. For example, say I currently have £500 in a flexible ISA. Next tax year I have a new £20k allowance but I don't contribute anything new. I withdraw £300. My allowance is £20k as I haven't added anything. Later on I put the £300 back - is my allowance still £20k or is this £300 'new' money?

Thanks.

eskbanker

You can withdraw any amount from a flexible ISA and replenish it without affecting current year allowance.

slinger2

When the money originally went in doesn't matter. To take advantage of the flexibility you need to replace it in the same tax year that you withdrew it.

sammy_zammy

Yes. So next tax year, you can withdraw up to £20,500 without going over the £20,000 limit.