Trading 212 flexible Cash ISA replaced deposits wrongly allocated to current tax year

ordnancesurvey84

I have a cash ISA with Trading 212 which is supposed to be flexible.

On 6th April this year, my current tax-year ISA allowance data was reset so that it was showing
"Used £0" and "Remaining £20,000"

Since 6th April, I've been dipping into and out of the flexible ISA being careful always to first withdraw and then deposit funds, such that I've only ever replaced what I've withdrawn and have never made use of this tax year's ISA allowance.

Trading 212 seems to have an odd way of displaying the data, such that if £5,000 is withdrawn it displays:

Current tax-year ISA allowance
"Used £0" and "Remaining £25,000",

but then if that £5,000 is replaced it displays

Current tax-year ISA allowance
"Used £5,000" and "Remaining £20,000".

I thought nothing of this, until now that I've tried to transfer out my Trading 212 ISA in full to another provider and I'm being asked to sign a transfer out form which states that the account is made up partly of this tax-year's contributions, which it shouldn't be.

I'm holding off transferring out until this is resolved and I'm currently awaiting a response from one of their "transfer specialists".

Has anyone else experienced something similar?

masonic

That doesn't appear correct. Replacement subscriptions should always be first allocated to previous tax years, meaning the "Used" figure should never be above zero unless the "Remaining" figure is below £20,000 by an equivalent sum.

clairec666

I had about £4000 in my account on 5th April, withdrew £1250 and have replaced £1050 so far. Allowance currently says "Used: "£1050.00, remaining: £20200.00". Like you I thought nothing of it - I haven't tried transferring out but probably will later this year now that I've lost the bonus rate. If they've assigned my £1050 to this year's subscriptions then I will be complaining - it defeats the point of it being a flexible ISA.

clairec666

gov.uk description is unclear - the example they give doesn't cover what happens if you withdraw before depositing

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

masonic

clairec666 said:

gov.uk description is unclear - the example they give doesn't cover what happens if you withdraw before depositing

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

See https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#flexible-isas

clairec666

masonic said:

clairec666 said:

gov.uk description is unclear - the example they give doesn't cover what happens if you withdraw before depositing

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

See https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#flexible-isas

Thank you, that makes it 100% clear. Trading 212 has applied the rules wrongly.

ordnancesurvey84

Thanks both of you - yes the rules are clear that deposits should be used to replace previous years' withdrawals first.
I'll see what Trading 212 say - in the meantime I'm holding off transfering out.

clairec666

Keep us updated on what happens, as I'm in the same boat

ordnancesurvey84

Trading 212 have - after some toing and froing on their chat agreed to allocate my replaced contributions to previous tax years!

clairec666

Thanks for the update - I guess they probably won't automatically apply this to all customers, and we'll all individually have to make a complaint!

Kim_13

Astounding that they first tried to say that they were in the right. If it counts towards the current year allowance then it isn’t a flexible ISA, is it? T212 will be on my avoid list. To my mind this is worse than a provider with a non-enforceable T&C that you must have all of the current year’s subscription with them.