Just noticed something on my previous year ISA, opinions needed please

E_zroda

24/25 tax year had YBS EASY ACCESS ONLINE ISA REWARD. Had to withdraw 2k from on 9th of April. Now on YBS online I see 'You can still add £22,000.00 into your ISA this tax year.' - instead of the usual 20K reminder.
Please could someone confirm my understanding that I won't be in breach of the ISA rules if in the 25/26 year:
1. Open a new cash ISA (which allows transfers in) elsewhere & pay 20K into it
2. Pay 2k in the old YBS ISA
3. Transfer my YBS ISA over to the new ISA
 (remember, this is all in theory, I don't have that kind of money!)
It is the first time I am in such position, so all kinds of input would be useful for my consideration.
Would it make any difference if the transfer in 3. is full or partial (provided I comply with the T&Cs of the recipient ISA)
Thank you in advance!

slinger2

Your YBS ISA is "flexible". So you can replace the £2k into that account without it affecting your £20k allowance. The replacement needs to be done before the end of the current tax year.

E_zroda

slinger2 said:

Your YBS ISA is "flexible". So you can replace the £2k into that account without it affecting your £20k allowance. The replacement needs to be done before the end of the current tax year.

Thank you.
Just one small further clarification of your comment please, does that mean that 
A. If I want to transfer the replaced 2K from the YBS to another ISA, I need to do the replacement in this year 
or
B. Regardless of what I do with the replaced 2K (in this or in a subsequent tax year), I can only do the replacement before 25/26 tax year is over
Cheers!

slinger2

E_zroda said:

slinger2 said:

Your YBS ISA is "flexible". So you can replace the £2k into that account without it affecting your £20k allowance. The replacement needs to be done before the end of the current tax year.

Thank you.
Just one small further clarification of your comment please, does that mean that 
A. If I want to transfer the replaced 2K from the YBS to another ISA, I need to do the replacement in this year 
or
B. Regardless of what I do with the replaced 2K (in this or in a subsequent tax year), I can only do the replacement before 25/26 tax year is over
Cheers!

If you want to "replace" the £2k (so it doesn't count towards your annual allowance) you need to replace it into the YBS account and do it this tax year. Once it's back in the YBS account you can "transfer" it whenever you want (this tax year or anytime thereafter), just like any other money you have in a Cash ISA.