Maturing ISA

Hedgehog23

Hello I have a maturing Cash ISA which I’ve arranged to be paid into my bank as the transfer rates weren’t as good as a new ISA. If I pay this into another provider, a new Cash ISA before April 5th, is this still counted as my 2025-26 allowance or will this be my next tax years allowance? Thanks in advance.

Woodstok2000

With some exceptions (for flexible isas), withdrawing the money from the ISA wrapper means you've lost the tax free status and must then use additional allowance to put it back in. Deposits will use the allowance of the current tax year at point of deposit.

If you still have some of your 25/26 isa allowance left then you can use that and deposit now, otherwise youll need to wait until after April 5th and use your 26/27 allowance.

flaneurs_lobster

How much new money have you paid into any ISA in this financial year? the difference between this and £20k is how much new money you can add to an ISA in this year.

If you've withdrawn cash from an ISA then this money is just counted as new money.

Hedgehog23

hi yes I thought as much so will wait until 6th April to invest as used full allowance thanks.

Newbie_John

But then you'll waste your 2026/27 allowance if you manually transfer it.

Why not open new ISA and make a transfer in-between, tell the new provider which ISA it will be transferred from and they'll do the rest.

If we're talking £1000 then it makes no difference but if you have £20k then as said earlier, you won't be able to add more if you do the transfer - if you let ISA providers sort it out then your allowance for next year remains untouched.