Confusion over flexible ISA rules

nofuse

Hi,

I have a flexible ISA with Trading 212 which I subscribed to in 2024-2025. This tax year I opened another ISA with UBL and used my full £20,000 allowance.

My question is can I withdraw some funds from the flexible Trading 212 ISA and replace them back to that account this year? Trading 212 are saying I can’t because I’ve already used my £20k allowance this year.

PRAISETHESUN

It's be worth double checking if your existing T212 ISA is flexible, but assuming it is, then yes - if you make a withdrawal then you can redeposit the money back into the same flexible ISA it was withdrawn from within the same tax year. The £20k limit would only apply if the T212 ISA isn't flexible, as then any deposits would count towards your ISA limit, which is already maxed out by your UBL ISA.

Alternatively, you can transfer your T212 ISA to another provider which is flexible, and then make your withdrawal.

danny13579

Yes, as T212 Cash ISAs are flexible you can do this. You just need to replace the cash in your T212 ISA before the end of the tax year.

You may find the Cash ISAs forum of help to you. 

clairec666

Have a look at this post: https://forums.moneysavingexpert.com/discussion/6611259/trading-212-flexible-cash-isa-replaced-deposits-wrongly-allocated-to-current-tax-year - you should be able to withdraw from a flexible ISA and any payments back in should be allocated to previous years savings, but it's possible that Trading 212 don't apply the rules properly

slinger2

I'm wondering how they know that you've used your allowance this year. Anyway, as noted, you can withdraw from the T212 ISA and replace it later. The rule is that you need to replace it in the same tax that you WITHDREW it (otherwise it'll count as new money). When the money was paid in doesn't matter.