Drawing from which tax year?

NebulaNova

If I have £20k in an ISA 2025-2026, and I add £20k to it in 2026-2027, then draw out £10k, which tax year am I drawing out from?

With Moneybox and tempted to transfer another £20k next week, but is there a way to tell which year you draw from?

Thanks

nottsphil

If it's a transfer from a flexible ISA, then that will come from old money first.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81949400#Comment_81949400

Have you found this defined authoritatively anywhere? I looked at the gov.uk guidance (which clarifies that withdrawals from flexible ISAs are processed the other way round, i.e. newest money first) but don't see any reference to the equivalent sequencing for transfers. Unlike withdrawals, transfer forms often allow the holder to stipulate which years are to be transferred anyway, so there is more control possible in some cases.

Academic for OP though, if looking to withdraw from Moneybox, as this isn't flexible! For withdrawals from a non-flexible ISA, I don't think it matters which year they're deemed to be from, as there's no potential to replace them and the withdrawn funds aren't netted off against deposits for allowance purposes.

dcs34

When you withdraw cash in any year, it comes first from that year’s subscription and reduces the subscription amount for that year.

If you withdraw more than the current year’s subscription amount, the extra amount is considered a withdrawal from the previous year.

Replacement subscriptions are deemed to be:

• firstly of previous year funds
• secondly of current year subscriptions

Where a flexible ISA has current year subscriptions only, any withdrawals over and above the amount subscribed (for example, income or capital growth) can only be replaced in that ISA.

The withdrawal of previous year funds from a flexible ISA can only be replaced in the account from where the withdrawal was made and must be replaced in the same tax year.

The withdrawal of current year subscriptions from a flexible ISA automatically reduces the net subscription to that ISA meaning that additional subscriptions can be made to other ISAs (flexible or non-flexible) in the remainder of that tax year.

From: https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#flexible-isas

Correct as of 18th September 2025