Can I use flexible and non-flexible ISAs in this way to maximise allowance?

slinger2

The only issue is if the OP actually believes that by withdrawing £10k he does then actually have an allowance £30k (as he's been told by T212). The reality is that, at the point, he's still only got his £20k allowance. Since the T212 ISA is flexible he can "replace" the £10k he's withdrawn (in the same tax year) but it's very confusing to include this as part of his allowance. There needs to be separate amounts given for unused allowance and for replaceable money.

eskbanker

slinger2 said:

The only issue is if the OP actually believes that by withdrawing £10k he does then actually have an allowance £30k (as he's been told by T212). The reality is that, at the point, he's still only got his £20k allowance. Since the T212 ISA is flexible he can "replace" the £10k he's withdrawn (in the same tax year) but it's very confusing to include this as part of his allowance. There needs to be separate amounts given for unused allowance and for replaceable money.

But the figure shown by any institution for 'remaining allowance' only ever relates to how much can be paid into an ISA with that institution, as they obviously don't know what's been used elsewhere, so that's always the context of that figure, i.e. it's never intended to be interpreted as an authoritative and reliable definition of a saver's actual aggregate residual allowance when multiple products are in use.

masonic

eskbanker said:

slinger2 said:

The only issue is if the OP actually believes that by withdrawing £10k he does then actually have an allowance £30k (as he's been told by T212). The reality is that, at the point, he's still only got his £20k allowance. Since the T212 ISA is flexible he can "replace" the £10k he's withdrawn (in the same tax year) but it's very confusing to include this as part of his allowance. There needs to be separate amounts given for unused allowance and for replaceable money.

But the figure shown by any institution for 'remaining allowance' only ever relates to how much can be paid into an ISA with that institution, as they obviously don't know what's been used elsewhere, so that's always the context of that figure, i.e. it's never intended to be interpreted as an authoritative and reliable definition of a saver's actual aggregate residual allowance when multiple products are in use.

It would probably make more sense to show the current year subscriptions used (i.e. before any flexible withdrawals) and then the amount available to be added in replacement subscriptions (before any additional allowance will be used). Perhaps with a comment that the subscriptions used across all the customer's ISAs should not exceed £20k.

friolento

masonic said:

friolento said:

Jazzking said:

clairec666 said:

Check if transferring your Trading 212 ISA to Santander in full means that the account is closed. If so, you won't be able to make the most of its flexible status to pay back in.
Best bet is to transfer out of Trading 212 to another ISA elsewhere, then leave in the amount that you want to transfer to Santander. Then initialise the transfer to Santander.

Hiya, yes, I spotted that and whilst T212 isn't table topping at the moment, I do like the flexibility so was keen to keep it open.  That's why I took the £10k out of T212 and popped it in Halifax and will then use Halifax as the account which is transferred to Santander for the offer

Thanks @eskbanker and @friolento for your help in my understanding too - I've got a plan now!

When you say you took out £10k of T212 and popped it into Halifax - - - do you mean you withdrew it from your T212 ISA and then deposited it into a new Halifax ISA? If I understood that correctly, and that you have deposited £20k this tax year into T212 before, you now have deposited £30k this tax year. I.e. you have busted your ISA allowance. This is not what I have suggested you should do.

I don't think there is an issue here. OP originally stated no deposits made yet this year (of T212 ISA). So the £10k removed and deposited into Halifax counts as £10k used in this tax year. A further £10k can be replaced in T212 (only, and by the end of the tax year), leaving a final £10k from this year's allowance to be used anywhere.

Seems I wrongly assumed they had already used their current year allowance. Apologies.

Jazzking

Hi all - sorry, been away this weekend.  Yes, I'd not made any deposits in 25/26 yet so the £10k I withdrew and deposited was my only one (to ensure I managed to get the Santander fix opened and funded in time).

The rest of the info on the flexible-ness of the T212 has been really useful and given I will have some regular savers maturing later this year means I will be able to put some of that back into T212 as part of this year's ISA allowance.

Speculator

I asked a similar question last month.

Withdraw from flexible ISA & pay into new 25/26 ISA vs Transfer — MoneySavingExpert Forum