ISA's stripped of flexible status

gesdt50

Good afternoon, looking at Martin's email yesterday saw Santander as a top ISA from a big name brand however in the t&c it mentions if a flexible ISA is transferred it will lose that possibility, can one transfer it back to  say after a year, a flexible ISA with a different provider or is that wrapper status lost for good?

NanookOfTheNorth

Yes.  What Santander are saying is if you put £20,000 in this tax year with another ISA provider, then on 1st May took out £5,000 (with the other ISA provider) - you'd need to make sure you put that £5,000 back in to the ISA (with the other ISA provider) before you transfer the ISA to Santander.

eskbanker

gesdt50 said:

Good afternoon, looking at Martin's email yesterday saw Santander as a top ISA from a big name brand however in the t&c it mentions if a flexible ISA is transferred it will lose that possibility, can one transfer it back to  say after a year, a flexible ISA with a different provider or is that wrapper status lost for good?

Since the start of the previous tax year, the rule for flexible ISAs is that any funds withdrawn can be replenished without counting towards the current annual contribution allowance but only if this is done back into the same ISA before the end of the tax year in which the withdrawal was made.  This needs to be done prior to any transfers if that's what you mean....