Isa Confusion!

helgawb

I get so confused with ISAs so please bear with me!

Firstly I have an Isa with Tembo, I had two allowances of £20,000 held representing my allowances from 24 to 25 and my current year 25 to 26. Firstly I got confused because the Tembo's Isas  are branded as 'easy access' and I thought that meant you could put money in and take it out again in the current tax year. So I needed to have brief access to £20,000 so I withdrew it from Tembo to my current account. But with the intention of putting it back if I did not end up needing the £20,000. Of course now you can see my mistake that easy access is not flexible. However my question is can I not put the £20,000 into a new Isa as I now haven't got any isa for this year? And the other issue is, the £20,000 left in my Tembo account is showing as being in this year's allowance, but why would it have taken it out of the previous years allowance not this years?

Any help appreciated!

wmb194

helgawb said:

I get so confused with ISAs so please bear with me!

Firstly I have an Isa with Tembo, I had two allowances of £20,000 held representing my allowances from 24 to 25 and my current year 25 to 26. 

Firstly I got confused because the Tembo's Isas  are branded as 'easy access' and I thought that meant you could put money in and take it out again in the current tax year. 

So I needed to have brief access to £20,000 so I withdrew it from Tembo to my current account. 

But with the intention of putting it back if I did not end up needing the £20,000. 

Of course now you can see my mistake that easy access is not flexible. 

However my question is can I not put the £20,000 into a new Isa as I now haven't got any isa for this year? 

And the other issue is, the £20,000 left in my Tembo account is showing as being in this year's allowance, but why would it have taken it out of the previous years allowance not this years?

Any help appreciated

So your balance was £40k+ with £20k deposited last tax year and £20k this tax year i.e. you’ve used this year’s allowance. 

 If the ISA isn’t flexible then no, you cannot return the money or deposit money into another ISA this tax year.

 It’s normal for withdrawals to be taken from prior tax years first. There are HMRC rules that the providers follow.

Ayr_Rage

By adding and then removing £20,000 in this tax year you have used you current allowance that is why it is showing as such.

As the ISA is not flexible that's it for this tax year, you cannot fund ANY other ISA.

Ch1ll1Phlakes

Yes Tembo's Cash ISA is not flexible. The deposits from the previous tax-year have been withdrawn first which is normal.

You will not be able to make any further contributions to this ISA, as you've used all your current year subscriptions and your previous year subscriptions are now gone.

helgawb

Ok thanks everyone, looks like that's then, learnt my lesson