Partial transfer of flexibly withdrawn Skipton ISA

gwapenut

I know there have been a few discussions around this kind of topic, particularly with Yorkshire BS who calculated the allowances wrongly, but I wondered if anyone had experience of this with Skipton? I don't dare ring up and ask because I don't trust that the response I get will be accurate.

So if I have, say, £25k of previous years' allowances in a Skipton ISA, flexibly withdraw £3k to leave a balance of £22k, and then transfer £21k to another provider, leaving a balance of £1k in the skipton….

Am I right in thinking that flexible ISA rules say that I can still pay back in the £3k, and that it must be paid back into the Skipton? And, more importantly, do Skipton actually allow the £3k to be paid back in after a partial transfer out of previous years' money?

eskbanker

Am I right in thinking that flexible ISA rules say that I can still pay back in the £3k, and that it must be paid back into the Skipton?

Yes, you're right about the theory, i.e. that if you wish to redeposit flexibly-withdrawn prior year money without it counting as new funds, it must be to the same account from which it was withdrawn, and within the same tax year.

I don't have any experience about whether Skipton do anything odd though, but given where we are in the tax year, are you able to redeposit the £3K before transferring?

gwapenut

Sadly not, the real numbers are a bit higher than my simplistic example, and I'm up against withdrawal limits from the account where the flexibly withdrawn funds have gone, and also trying to meet an ISA transfer deadline!