Flexible cash ISAs between providers

What_time_is_it

I’ve got an ISA with Tradding 212 and it is a flexible cash ISA.

i paid in (almost) £20,000 at the start of this tax year and transferred in another £60k held in previous ISAs so the total balance is around £80k.

if I withdraw the £20k I put in this year and then transfer the remainder over to another cash ISA provider (to get a better rate), will I be able to put this £20k back into an ISA before the end of this tax year? I want to put it in a “normal” savings account for now, but before the end of the tax year I would like to make sure that I max out my ISA allowance.

Basically, I’m unsure how flexible ISAs work across different providers and so want to be 100% certain that I won’t “lose” my 2024/26 allowance before I go ahead and make a withdrawal.

Thanks!

badger09

What_time_is_it said:

I’ve got an ISA with Tradding 212 and it is a flexible cash ISA.

i paid in (almost) £20,000 at the start of this tax year and transferred in another £60k held in previous ISAs so the total balance is around £80k.

if I withdraw the £20k I put in this year and then transfer the remainder over to another cash ISA provider (to get a better rate), will I be able to put this £20k back into an ISA before the end of this tax year? I want to put it in a “normal” savings account for now, but before the end of the tax year I would like to make sure that I max out my ISA allowance.

Basically, I’m unsure how flexible ISAs work across different providers and so want to be 100% certain that I won’t “lose” my 2024/26 allowance before I go ahead and make a withdrawal.

Thanks!

BIB
You would be able to put the amount you withdraw back into the same T212 flexible ISA. 

Be careful though. If you withdraw what you paid in, and also transfer the £60k, leaving a zero balance, some providers would close your ISA. If that happens, you won’t be able to replace  your withdrawn amount, or pay it in anywhere else. 

Check first if T212 specify a minimum balance. 

What_time_is_it

So I can only replace funds back into THE SAME ISA?

slinger2

What_time_is_it said:

So I can only replace funds back into THE SAME ISA?

That's correct (since April 2024). If you withdraw from a flexible ISA and then that account is closed, you can no longer "replace" it.

sammy_zammy

badger09 said:

What_time_is_it said:

I’ve got an ISA with Tradding 212 and it is a flexible cash ISA.

i paid in (almost) £20,000 at the start of this tax year and transferred in another £60k held in previous ISAs so the total balance is around £80k.

if I withdraw the £20k I put in this year and then transfer the remainder over to another cash ISA provider (to get a better rate), will I be able to put this £20k back into an ISA before the end of this tax year? I want to put it in a “normal” savings account for now, but before the end of the tax year I would like to make sure that I max out my ISA allowance.

Basically, I’m unsure how flexible ISAs work across different providers and so want to be 100% certain that I won’t “lose” my 2024/26 allowance before I go ahead and make a withdrawal.

Thanks!

BIB
You would be able to put the amount you withdraw back into the same T212 flexible ISA. 

Be careful though. If you withdraw what you paid in, and also transfer the £60k, leaving a zero balance, some providers would close your ISA. If that happens, you won’t be able to replace  your withdrawn amount, or pay it in anywhere else. 

Check first if T212 specify a minimum balance. 

In my experience T212 don’t close the ISA even if you transfer out the full balance.

What_time_is_it

Related question - Could I instead transfer the full balance to a new provider, and then withdraw just this year’s element as a flexible part? And then pay that back in later? I guess I’m asking whether this year’s balance remains flexible if you transfer it to another provider?

eskbanker

What_time_is_it said:

Related question - Could I instead transfer the full balance to a new provider, and then withdraw just this year’s element as a flexible part? And then pay that back in later? I guess I’m asking whether this year’s balance remains flexible if you transfer it to another provider?

Flexibility isn't preserved as such when transferring but if the new ISA is flexible then you can use it flexibly.

slinger2

What_time_is_it said:

Related question - Could I instead transfer the full balance to a new provider, and then withdraw just this year’s element as a flexible part? And then pay that back in later? I guess I’m asking whether this year’s balance remains flexible if you transfer it to another provider?

You can withdraw/replace any or all of it. Makes no difference whether its old money or new.

What_time_is_it

slinger2 said:

What_time_is_it said:

Related question - Could I instead transfer the full balance to a new provider, and then withdraw just this year’s element as a flexible part? And then pay that back in later? I guess I’m asking whether this year’s balance remains flexible if you transfer it to another provider?

You can withdraw/replace any or all of it. Makes no difference whether it’s old money or new.

I’m confused! I thought you could only replace this year’s allowance with a flexible ISA? Is it possible to withdraw and replace previous year’s allowances too??

in my case I have £80k in an ISA. I have paid in nearly £20k of that this tax year. How much of that is flexible then? Just this year’s £20k? Or the entire £80k?

slinger2

Since April 2024 it's all been simplified.

eskbanker

What_time_is_it said:

slinger2 said:

What_time_is_it said:

Related question - Could I instead transfer the full balance to a new provider, and then withdraw just this year’s element as a flexible part? And then pay that back in later? I guess I’m asking whether this year’s balance remains flexible if you transfer it to another provider?

You can withdraw/replace any or all of it. Makes no difference whether it’s old money or new.

I’m confused! I thought you could only replace this year’s allowance with a flexible ISA? Is it possible to withdraw and replace previous year’s allowances too??

in my case I have £80k in an ISA. I have paid in nearly £20k of that this tax year. How much of that is flexible then? Just this year’s £20k? Or the entire £80k?

The entire balance is flexible.

When you withdraw cash in any year, it comes first from that year’s subscription and reduces the subscription amount for that year.

If you withdraw more than the current year’s subscription amount, the extra amount is considered a withdrawal from the previous year.

Replacement subscriptions are deemed to be:

• firstly of previous year funds
• secondly of current year subscriptions

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