Flexible, non flexible Isa rules

gesdt50

Hi as its possible to take funds from a non flexible Isa which was previously a flexible Isa with a different provider, is there downsides to going this route as I currently am wanting to transfer from a low paying flexible Isa to a non flexible however even though AI says its possible to just transfer back a year or certain amount of time later the funds to a flexible Isa; I'm wondering if there are downsides to having lost the status during the initial transfer from flexible to non flexible apart from that there are only so many bank, building society, platforms that will have beneficial rates and status types?

masonic

No, as usual the AI is wrong. Your opening premise "as its possible to take funds from a non flexible Isa which was previously a flexible Isa with a different provider" is incorrect. Well, it's correct insofar as you can remove the money, but it is not replaceable without using more of your annual allowance. The downside to having lost flexible status is that it has lost flexible status, so if you have used your full ISA allowance for the current tax year, transfer it to a non-flexible ISA and withdraw even £1, you will have to wait until the next year until you can pay it back in using your 2026/27 allowance.

Remember that until recently, AI chatbots could not correctly determine the number of 'r's in strawberry. Even now, with that rather famous embarrassing example having been patched, one only needs to stretch them a little further to reveal how inept they remain:

Do not expect them to correctly understand the nuances of complex financial products.

gesdt50

Thanks for informing, hadn't reealized AI was totally so inept