Flexible ISA Query

itsninja

I have opened a flexible ISA this year for 8,000. ISA tells me I still have 12,000 available to subscribe. I withdraw 4,000. ISA is flexible and tells me I now have 16,000 available to subscribe.
Can I now subscribe 16,000, in a different ISA with a different company? Or is it 4000, back in the original and only 12000 elsewhere?

jimjames

The rules changed I understand and it's now £16000 with the same or other company. Previous years still have to go back to the same place though.

Ch1ll1Phlakes

The most recent ISA rules mean any current tax-year contributions that are flexibly withdrawn can be paid into any ISA.

It's treated as if you never made the £4k contribution at all. I.e. you only made a £4k contribution to ISA A and now will make a £16k contribution to ISA B.

See the following The Individual Savings Account (Amendment) Regulations 2025 point 5.2.3
Or here Individual Savings Account and Child Trust Funds — (Amendment) Regulations 2025 - GOV.UK the last paragraph of Policy Objective

badger09

I predict a lot of posts starting April 2026 from people who haven’t kept a record of Flexible ISA transactions, and simply rely on the ‘Available to subscribe’ figure. 

In OP’s example:
ISA manager 1 says £16k available
ISA manager 2 says £4k available
If they add any more (new money), to either, they’ve exceeded their allowance. 

Hope I’m wrong. 

 

RG2015

Just to clarify using the original post as an example and limiting all transactions to one tax year.

£8,000 subscribed to cash ISA A
£4,000 withdrawn flexibility from cash ISA A
£16,000 subscribed to cash ISA B with a different bank/provider.
Therefore the total subscription during the year is £24,000.

Do the new rules mean that this does not breach the annual £20,000 ISA allowance?

refluxer

RG2015 said:

Just to clarify using the original post as an example and limiting all transactions to one tax year.

£8,000 subscribed to cash ISA A
£4,000 withdrawn flexibility from cash ISA A
£16,000 subscribed to cash ISA B with a different bank/provider.
Therefore the total subscription during the year is £24,000.

Do the new rules mean that this does not breach the annual £20,000 ISA allowance?

I think that is correct. According to the MSE guide to flexible cash ISAs, 'as long as you withdraw from a flexible ISA, you can now re-deposit in the same or any other ISA (flexible or not) and it won't count towards your £20,000 annual limit'.

Albermarle

RG2015 said:

Just to clarify using the original post as an example and limiting all transactions to one tax year.

£8,000 subscribed to cash ISA A
£4,000 withdrawn flexibility from cash ISA A
£16,000 subscribed to cash ISA B with a different bank/provider.
Therefore the total subscription during the year is £24,000.

Do the new rules mean that this does not breach the annual £20,000 ISA allowance?

Yes because the ISA A will only report £4K of new subscriptions.

However I think it was mentioned in another thread, that it is possible that not all providers have caught up with the new rules ( maybe need some new IT updates) . So it is worth double checking what your provider(s) actually say you have subscribed, to be on the safe side. 

jimjames

badger09 said:

I predict a lot of posts starting April 2026 from people who haven’t kept a record of Flexible ISA transactions, and simply rely on the ‘Available to subscribe’ figure. 

In OP’s example:
ISA manager 1 says £16k available
ISA manager 2 says £4k available
If they add any more (new money), to either, they’ve exceeded their allowance. 

 

That's always been the case though with cash and S&S ISAs