Cash ISA tactics for the new tax year ?

Oasis1

Proper's new flexible cash ISA with 4.7% interest seems like a great shout if you have any flexibly held ISA cash hanging about!

nottsphil

https://forums.moneysavingexpert.com/discussion/comment/81947336#Comment_81947336

Sounds like you have been swayed by Jimjames' advice, which will lose you the tax free status.

You withdraw the current year's subscriptions (not any interest) from Chip and put them into Prosper today. Those could be less than £20,000 so you can top up, using firstly any subscriptions you might possibly have made into other flexible ISAs this year. You can then top up again from 6 April.

Could someone more knowledgeable than me like @masonic please confirm or expand on this to give SFC the confidence that this is the correct advice.

masonic

Assuming it is current year money we are talking about, that is correct. It is unnecessary to use up the 2026/27 allowance by waiting until 6th April. Especially so as this will be many people's last opportunity to put £20k of new money into a cash ISA for a while.

nottsphil

Thanks for the prompt response, or maybe that should come from SFCooper, who doesn't seem to do 'thanks' (all 3 of those sole thumbs-ups on your last three posts have come from me).

I'd be grateful if you could do the same for my post with the photo on the previous page please. (Confirm/expand, not thank ☺️)

masonic

https://forums.moneysavingexpert.com/discussion/comment/81947485#Comment_81947485

Yes, that's right too. The interest is bound to the Monument ISA and must be replaced to it within the same tax year to retain status. Whereas the current tax year subscriptions can be moved about while they remain current tax year.

nottsphil

https://forums.moneysavingexpert.com/discussion/comment/81947578#Comment_81947578

Oh.

Well, that contradicts the bracketed bit of

The £737.87* interest accumulated can also be withdrawn now and used as I like, but its status can only be restored by returning it to this account (though at any time).

masonic

https://forums.moneysavingexpert.com/discussion/comment/81948173#Comment_81948173

The basis for all flexible withdrawals is one of returning money to the ISA wrapper within the same tax year. Rather like the story of Cinderella, if it isn't returned by midnight when the tax year rolls over, the spell is broken.

It can of course be flexibly withdrawn again and replaced within the following tax year, and so on.

nottsphil

https://forums.moneysavingexpert.com/discussion/comment/81948265#Comment_81948265

🤔 If anyone is perplexed by this, he means replaced the same year (that it's withdraw) and not the following year 🥴

masonic

https://forums.moneysavingexpert.com/discussion/comment/81949415#Comment_81949415

To clarify, I meant (withdrawn again and replaced) all within the following tax year (e.g. withdraw from 6th April 2026, replace by 5th April 2027, withdraw again from 6th April 2027 and replace by 5th April 2028). The money just needs to be in the ISA for at least that one overnight period to keep its status.