Do ISA accounts now automatically open for the new tax year?

JadeHighland

I have a Vanguard and a Trading 212 account. Logging in, my ISA limit is showing I have £20,000 for the current tax year. However, I can't really see a way to manage the ISA from last year. Let's say I want to withdraw money from my 2024/5 ISA and then top it back up again, it's not immediately obvious how to do that on both accounts. 

400ixl

Some ISA's do not allow you to remove and replace money, also many do not allow you to add new money after. certain time (14 days from opening from example). Those you can only withdraw or transfer.

You need to understand what your ISA provider allows.

masonic

If the ISA is flexible, then withdrawals will be added on to your allowance, such that it can increase above £20k.

Bigwheels1111

My Trading212 is asking me to deposit funds for this year 2025.

I have 10k from last year still in the account.

Where it states how much you have left to fund the account it says £0.00 & £20,000 to fund.

I don't think I will fund it yet as hoping there might be a few new offers on the horizon.

Barkin

The OP isn't clear, but as Vanguard is mentioned I'd assume we're talking about S&S ISA(S)?  In which case, unless there's any uninvested cash, there won't be anything to withdraw unless & until some investments are sold.

More info required from the OP.

lr1277

I may have got the wrong end of the stick but I am under the impression with a flexible ISA you can only draw out what you have deposited this tax year.

Some details herre:

https://www.gov.uk/individual-savings-accounts/withdrawing-your-money

The key statement for me is:

If your ISA is ‘flexible’, you can take out cash then put it back in during the same tax year without reducing your current year’s allowance. Your provider can tell you if your ISA is flexible.

So in my mind, say you have an ISA from 24/25 where you contributed £20k. If you then take out £5k of that and then put it  back in an ISA in the 25/26 year, that is part of your 25/26 allowance. Your allowance is still £20k and not £25k for the 25/26 tax year.

However if you put into your ISA £20k in the 25/26 tax year, then withdraw £10k within this tax year, you can put the £10k back later in the tax year (assuming it is a flexible ISA).

Basically you can't withdraw money from one tax year and put it back in a later tax year and assume you have more than the £20k allowance in that later tax year.

eskbanker

lr1277 said:

I may have got the wrong end of the stick but I am under the impression with a flexible ISA you can only draw out what you have deposited this tax year.

You can withdraw as much as you like, up to the total balance (which could be many years' worth of full subscriptions) but in order to avoid being treated as new money when redepositing, any flexibly-accessed money needs to be redeposited by the end of the tax year in which it was withdrawn (this separate issue being highlighted later in your post).