Flexible ISA transfers

camclay

Hi. I have a flexible ISA from last year 23-24 with Paragon (double access).  This year's 24-25 is with Zopa (unlimited access).  What I planned to do is max out the Zopa one before April.  Then in April draw most of the Paragon one out and pay towards mortgage.  THEN transfer the Paragon Isa (with say £2k left in it) to the Zopa one.  Now, if I do this, will i be able to fill up that £18k again inside the Zopa one as well as the £20k for the 26-27 year in Zopa?  Or will I lose that £18k allowance from 23-24?  Since ISA transfers can take 6 weeks, i thought if i could withdraw most of it, use it, then transfer it and pay it back in later, that would work.  Can I do this?  Thanks, Glenn

eskbanker

If you want to repay the withdrawn £18K into a flexible ISA, you'd need to do so before transferring it.

I'm assuming here that your references to April signify withdrawals after 6 April....

camclay

Hi - yes - thanks. Interesting, so to retain your allowance you have to make sure the ISA is full before doing a transfer?  Yes I am referring to 6 April.

I guess the alternative is to NOT transfer, withdraw after 6 April, fill up again and transfer later.

Thanks, Glenn

eskbanker

camclay said:

Hi - yes - thanks. Interesting, so to retain your allowance you have to make sure the ISA is full before doing a transfer?

Sort of - the point is that if you've withdrawn old money from a flexible ISA and wish to redeposit it (without it counting towards the current year allowance), you can only do so into the same ISA.