isa issue

northlondonforever

I would be grateful if someone could help me.
My daughter has two flexible isa's both opened in different tax years.
isa 1 opened in 22/23 but this tax year withdrew £6500 from it of which £4000 was put into a Lisa.
isa 2 opened in 23/24 has £15000 deposited.
is she only allowed a further deposit of £1000 this tax year to bring her up to the yearly max of £20000 (15000+4000) or can she also replenish the £6500 into isa 1
hope that makes sense....thanks

eskbanker

northlondonforever said:

I would be grateful if someone could help me.
My daughter has two flexible isa's both opened in different tax years.
isa 1 opened in 22/23 but this tax year withdrew £6500 from it of which £4000 was put into a Lisa.
isa 2 opened in 23/24 has £15000 deposited.
is she only allowed a further deposit of £1000 this tax year to bring her up to the yearly max of £20000 (15000+4000) or can she also replenish the £6500 into isa 1
hope that makes sense....thanks

If the LISA was funded with money withdrawn from ISA 1, as opposed to a transfer, then that's used £4K of her 2024/25 annual ISA contribution allowance, leaving £16K.  If the £15K was deposited into ISA 2 during 2024/25, then this would leave £1K of her current year allowance, as well as £6.5K that can be replaced into ISA 1 (by Saturday).

northlondonforever

Thanks for your response, explained brilliantly!