Transfers and Flexible ISAs

squirrelgnocchi

I opened a new ybs flexible Cash ISA this tax year. I transferred in a Fixed Rate ISA from a previous tax year when it matured. That ISA contained £5,000 from the last tax year, and I have added £4,000 to my ybs during this tax year. I also have another flexible easy-access Cash ISA that I opened last tax year. I subscribed £12,000 to this ISA last tax year and have added a further £2,000 during this tax year. The introductory bonus rate on this ISA has now ended.

I am considering transferring this second ISA into my ybs because the interest rate is significantly better. However, I expect to withdraw the £14,000 I will transfer in within the next two months to purchase a car, and I am unsure how the flexible ISA rules would apply in my case.

My questions are:

1. If I transfer the second ISA into the YBS flexible Cash ISA, will the transferred funds also benefit from the flexibility of the account, even though they originated in a different ISA and tax year? Similarly, will my previous fixed isa that I transferred in (£5000) now be flexible on repayment?
2. If I then withdraw £14,000, can I pay that £14,000 back into this account within this tax year without it counting towards my annual ISA allowance?
3. Would I still have my remaining unused ISA allowance for this tax year available in addition to the ability to replace the £14,000 withdrawal? (E.g., as I have subscribed £6k this tax year, I could pay back in £28k in total without being over isa limit)

eskbanker

The answer to each of those (four) questions is yes.