Moving cash out of a flexible S&S ISA

babyboysavings

I have recently had a share save scheme mature. I moved £20k of the shares to a flexible S & S ISA and then sold them to allow me to move more across, on the understanding this would protect me from paying captal gains tax. In terms of the cash i have withdrawn, am i allowed to put £20k into my existing cash ISA to keep it protected from the tax man?

eskbanker

Yes, if you withdraw current year money from a flexible ISA, you can replenish that amount into any other ISA, before the end of the tax year.

Nuggy96

eskbanker said:

Yes, if you withdraw current year money from a flexible ISA, you can replenish that amount into any other ISA, before the end of the tax year.

I thought if you had say a flexible cash ISA with T212 and put £20k in there, then you withdrew the £20k, you could only put the £20k back in with the same provider i.e. T212 in this case?

leosayer

babyboysavings said:

I have recently had a share save scheme mature. I moved £20k of the shares to a flexible S & S ISA and then sold them to allow me to move more across, on the understanding this would protect me from paying captal gains tax. In terms of the cash i have withdrawn, am i allowed to put £20k into my existing cash ISA to keep it protected from the tax man?

You can't transfer any more shares to the S&S ISA in this tax year.

eskbanker

Nuggy96 said:

eskbanker said:

Yes, if you withdraw current year money from a flexible ISA, you can replenish that amount into any other ISA, before the end of the tax year.

I thought if you had say a flexible cash ISA with T212 and put £20k in there, then you withdrew the £20k, you could only put the £20k back in with the same provider i.e. T212 in this case?

No, the rules changed in July, so it's now back to how it was before April 2024, and current year money can be 'repaid' into any ISA, even though prior year money would have to be returned to the one from which it was withdrawn.

eskbanker

leosayer said:

babyboysavings said:

I have recently had a share save scheme mature. I moved £20k of the shares to a flexible S & S ISA and then sold them to allow me to move more across, on the understanding this would protect me from paying captal gains tax. In terms of the cash i have withdrawn, am i allowed to put £20k into my existing cash ISA to keep it protected from the tax man?

You can't transfer any more shares to the S&S ISA in this tax year.

Why not?

As discussed in this thread, nobody could identify a definitive reason why this wouldn't be permitted, within 90 days of maturity:

https://forums.moneysavingexpert.com/discussion/6526980/clarification-needed-on-90-day-saye-shares-to-isa-transfer

leosayer

eskbanker said:

leosayer said:

babyboysavings said:

I have recently had a share save scheme mature. I moved £20k of the shares to a flexible S & S ISA and then sold them to allow me to move more across, on the understanding this would protect me from paying captal gains tax. In terms of the cash i have withdrawn, am i allowed to put £20k into my existing cash ISA to keep it protected from the tax man?

You can't transfer any more shares to the S&S ISA in this tax year.

Why not?

As discussed in this thread, nobody could identify a definitive reason why this wouldn't be permitted, within 90 days of maturity:

https://forums.moneysavingexpert.com/discussion/6526980/clarification-needed-on-90-day-saye-shares-to-isa-transfer

Because the OP said they had used their £20k ISA allowance for this tax year.

Nuggy96

eskbanker said:

Nuggy96 said:

eskbanker said:

Yes, if you withdraw current year money from a flexible ISA, you can replenish that amount into any other ISA, before the end of the tax year.

I thought if you had say a flexible cash ISA with T212 and put £20k in there, then you withdrew the £20k, you could only put the £20k back in with the same provider i.e. T212 in this case?

No, the rules changed in July, so it's now back to how it was before April 2024, and current year money can be 'repaid' into any ISA, even though prior year money would have to be returned to the one from which it was withdrawn.

Oh I did not know about this rule change, so in theory, if i put £20k in a chip cash isa (flexible) this tax year, I could withdraw £4k out of here, and put £4k into a AJ Bell LISA and not break any rules?

eskbanker

leosayer said:

eskbanker said:

leosayer said:

babyboysavings said:

I have recently had a share save scheme mature. I moved £20k of the shares to a flexible S & S ISA and then sold them to allow me to move more across, on the understanding this would protect me from paying captal gains tax. In terms of the cash i have withdrawn, am i allowed to put £20k into my existing cash ISA to keep it protected from the tax man?

You can't transfer any more shares to the S&S ISA in this tax year.

Why not?

As discussed in this thread, nobody could identify a definitive reason why this wouldn't be permitted, within 90 days of maturity:

https://forums.moneysavingexpert.com/discussion/6526980/clarification-needed-on-90-day-saye-shares-to-isa-transfer

Because the OP said they had used their £20k ISA allowance for this tax year.

But it went into a flexible ISA, so can be withdrawn in order to reset the allowance and permit another contribution of up to £20K before the end of the tax year.

eskbanker

Nuggy96 said:

eskbanker said:

Nuggy96 said:

eskbanker said:

Yes, if you withdraw current year money from a flexible ISA, you can replenish that amount into any other ISA, before the end of the tax year.

I thought if you had say a flexible cash ISA with T212 and put £20k in there, then you withdrew the £20k, you could only put the £20k back in with the same provider i.e. T212 in this case?

No, the rules changed in July, so it's now back to how it was before April 2024, and current year money can be 'repaid' into any ISA, even though prior year money would have to be returned to the one from which it was withdrawn.

Oh I did not know about this rule change, so in theory, if i put £20k in a chip cash isa (flexible) this tax year, I could withdraw £4k out of here, and put £4k into a AJ Bell LISA and not break any rules?

That's right.