How does a flexible ISA affect a S&S ISA?

njb55rtd · 13 March 2018 at 5:06PM

At the beginning of the 2017/18 I had £20K in a flexible ISA. During the year I gradually withdrew the lot but have recently paid it all back in. So, overall, no net gain/loss. How does this affect my ability to contribute into my (existing) Stocks & Shares ISA as well? Am I right in thinking that the £20K that I've put back in my flexible ISA does not count as any ISA contribution anywhere and therefore that I can also put up to £20K in my S&S ISA this year?

Robisere · 13 March 2018 at 5:09PM

If your ISA is accessible online, find the T&C's and that will tell you more than you can learn here.

Vortigern · 13 March 2018 at 5:36PM

njb55rtd wrote: »

Am I right in thinking that the £20K that I've put back in my flexible ISA does not count as any ISA contribution anywhere and therefore that I can also put up to £20K in my S&S ISA this year?

I believe you are right. I hope you are right because I'm doing the same.

With Nationwide's flexible ISA, the online statement shows how much withdrawn cash can be paid back in, and how much of this year's allowance has been used (none). If I pay in some cash it will reduce the "amount to be paid back in" and not reduce the unused allowance for the current year.

Alexland · 13 March 2018 at 8:37PM

I just read the ISA Managers guidance and this looks fine.

"6.82 Replacement of flexible ISA previous year funds must be made to the account from which the withdrawal was made, and in the same tax year.

For example, Mr Kennedy has previous year funds of £20,000 in his cash ISA. On 6 April 2017 his ISA manager changes the account terms and conditions to offer flexibility and on 8 April Mr Kennedy makes current year subscriptions of £5,000. On 8 June Mr Kennedy withdraws £12,000. The withdrawals are deemed to be firstly the £5,000 current year subscriptions, and secondly £7,000 of previous year funds. At this point Mr Kennedy's 'net' current year subscriptions are £nil and he can use his full 2017-18 annual subscription limit of £20,000 between his cash ISA and any stocks and shares, innovative finance or Lifetime ISA he subscribes to in 2017-18. He can replace the £7,000 previous year funds only with his cash ISA manager - at any time before 6 April 2018.

If Mr Kennedy has not made any current year subscriptions, the withdrawal of £12,000 on 8 June would all have been of previous year funds. Mr Kennedy could replace them at any time before 6 April 2018 in this cash ISA. And he could use his 2017-18 year subscription allowance between one cash, one stocks and shares, one innovative finance and one Lifetime ISA as he chooses."

Alex

How does a flexible ISA affect a S&S ISA?

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