New ISA

NebulaNova

Hi, I currently have a maxed out ISA for 2025/2026.

Could I withdraw the funds and start a new ISA for this year and pay it in and then it's still classed as having one ISA this tax year? Or can you not do that?

Thanks

Woodstok2000

Theres no limit on the number of ISAs you can have, only the amount you can pay in each tax year (£20k). With some flexible ISAs you can withdraw and replace money without issue within the same year, but in other cases when you withdraw the money that's it and you can't replace it above the £20k limit. If you want to move money to a new ISA, open it first then initiate a transfer to move money from your existing account.

lr1277

You need to use the transfer in process offered by the ISA provider. But not all ISA providers allow transfers in. So if opening a new ISA in the current tax year, check they allow a transfer in.

luci

If you are moving your existing ISA to one with a better rate, make sure you transfer it and don't withdraw it. That way your money will remain tax free. You can then add up to £20000 in year 2026/27 if you wish.

Albermarle

https://forums.moneysavingexpert.com/discussion/6660350/new-isa

If your current ISA is a flexible one, then you can withdraw the £20K from it, and deposit it into a new ISA before the end of the tax year.

This is because if it is a flexible ISA , it will then register your contributions this tax year as zero, therefore allowing you to open a new ISA and deposit the £20K into that. ( it is a relatively new rule I think).

If it is not a flexible ISA, the even if you take the £20K out it will still register you as having made £20K contributions, so your allowance is used up. In this case as already said you will been to start an ISA transfer process.

winkowinko

If you have £21k in flexible ISA, can you withdraw all of it on the 6th April and deposit it into a better paying one for 11 months before returning it back to the original ISA within the same tax year without it affecting your 20k allowance?

Reason I ask is because Prosper, who I'd like to shift the money to, don't allow transfers in.

Angelica123

https://forums.moneysavingexpert.com/discussion/comment/81930154#Comment_81930154

No.

If you withdraw current year's contribution you can deposit it back into any ISA.

However 21k will presumably include other years contribution. In that case, it needs to be returned to same ISA it was withdrawn from.

winkowinko

https://forums.moneysavingexpert.com/discussion/comment/81930322#Comment_81930322

The £21k (or just below), is made up solely of 25/26 contribution + monthly interest.

Could I withdraw the full amount now, from my flexible Vida ISA and deposit it into the Prosper ISA (which doesn't allow transfers in)?

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81930521#Comment_81930521

You'd only be able to deposit £20k.