TitoPuente
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Post by TitoPuente on Mar 19, 2016 23:34:54 GMT
All I can find are press articles and opinions. Not one actual application.
Is there any bank or institution that offers a concrete "Flexible ISA" to be open and used from 6 April?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 20, 2016 0:28:35 GMT
All I can find are press articles and opinions. Not one actual application. Is there any bank or institution that offers a concrete "Flexible ISA" to be open and used from 6 April? what kind? cash, no and most have indicated they wont, s&s, share centre are
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james
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Post by james on Mar 20, 2016 4:44:05 GMT
I'm looking for a flexible cash ISA that will take transfers in from S&S, haven't found one yet.
Coventry BS's variable rate cash ISa will become flexible in the new tax year but it only accepts transfers in from cash ISA. Their term deposit cash ISA will accept transfers in from S&S but isn't going to become flexible. I might use them for a current year subscription.
NatWest cash ISAs take transfers in from S&S via paper forms but no announcement yet on flexible features.
Santander have announced that they won't do a flexible cash ISA.
On the S&S side HL have indicted that they will not be implementing the flexible ISA feature at present.
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mikeh
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Post by mikeh on Mar 20, 2016 10:00:32 GMT
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ilmoro
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Post by ilmoro on Mar 20, 2016 12:51:16 GMT
That doesnt appear to be a Flexible ISA im afraid, quite clearly says tax free status will be lost on withdrawls. Unfortunately providers consistently use the term flexible in their spiel outside of the definition of the term by HMRC
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ilmoro
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Post by ilmoro on Mar 20, 2016 13:15:58 GMT
From a recent DM article
Virgin Money, Coventry BS and Halifax will offer the option on their easy-access cash Isas, but not their fixed-rate deals.
With Lloyds, TSB and Barclays, you will have flexibility on easy-access and fixed-rate cash Isas. But if you take money out of a fixed-rate deal, you can face a hefty penalty.
HSBC is looking to launch one this year, while Nationwide hopes to confirm its deal in a few weeks. Yorkshire BS savers will have to wait until the summer.
From Halifax site
Which Halifax ISAs are flexible?
Instant ISA Saver, ISA Saver Variable, Variable ISA Saver and ISA Saver Online are fully flexible.
ISA Saver Fixed and Help to Buy: ISA do not have full flexibility as this is limited by product rules. See individual product conditions for full details from 6 April.
No reference in the product spiel for Variable ISA Saver yet, (others dont seem to exist)
Nobody seems to have launched their 2016 products yet.
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mikeh
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Post by mikeh on Mar 20, 2016 13:30:59 GMT
That doesnt appear to be a Flexible ISA im afraid, quite clearly says tax free status will be lost on withdrawls. Unfortunately providers consistently use the term flexible in their spiel outside of the definition of the term by HMRC Sorry should have added it's not flexible now but will be on April 6th. We have already decided to make all our variable Cash ISAs flexible from the 6th April 2016.
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ilmoro
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Post by ilmoro on Mar 20, 2016 13:42:39 GMT
That doesnt appear to be a Flexible ISA im afraid, quite clearly says tax free status will be lost on withdrawls. Unfortunately providers consistently use the term flexible in their spiel outside of the definition of the term by HMRC Sorry it's not flexible now but will be on April 6th. We have already decided to make all our variable Cash ISAs flexible from the 6th April 2016. Youre quite right, didnt dig around enough on the site. How many customers wouldnt see that. Almost like they dont wont to you know. Theyre on my list now as I need to transfer exisiting ISA and their rate isnt awful. Thanks
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james
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Post by james on Mar 21, 2016 11:08:13 GMT
Thanks, both cash and, via paper form, S&S ISA transfers in allowed and to be flexible, just what I was looking for! Well electronic S&S transfer in would be nice but this gets the job done. 
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james
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Post by james on Mar 24, 2016 5:34:30 GMT
For the Skipton account it's worth knowing that you can't withdraw the initial payment until 14 days after it goes in. Act soon if you want to use the flexible ISA feature to withdraw this year's money as soon as possible in the new tax year. Doesn't seem to be a similar limit for later payments but they do note that electronic payments should arrive by the end of the next working day, far slower than normal Faster Payments service but in line with the minimum service standards now expected for payment institutions. That first limit may be there because an ISA account isn't actually opened until a subscription (deposit) is made and there's a 14 day cancellation period which starts then. A little later... I confirmed by phone with them that it's no problem to subscribe this year, transfer say 100k from a S&S ISA then withdraw 90k and redeposit later in the tax year. They also confirmed that no, they don't allow ISA transfers of £0 but you can pay in say a Pound if you want to then transfer that. The reason to transfer £1 is if you've subscribed in the then-current 2016/17 year and withdrawn that current year money. If you do a transfer you transfer the ISA allowance so you're able to redeposit in the ISA you transfer to. But you might as well just pay back in the whole current year amount that you took out and transfer it instead. Current year money is what is withdrawn first when you do make a withdrawal. A quite decent online system, both debit card and faster payments into the account were reasonably fast and the customer service rep knew the answers to the questions I asked. Nice combination. |
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stevio
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Post by stevio on Mar 24, 2016 7:38:07 GMT
Wondering if this scenario would be possible:
Contribute in this tax year (15/16) to a Flexible ISA by cashing in some P2P investments
Early next tax year 16/17 withdraw the balance and reinvest in P2P. Once an appropriate P2P Innovative Finance ISA is launched, cash in P2P investment and use the flexible ISA reinvestment part to effectively use 15/16 tax allowance to invest in the 16/17 tax year
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kermie
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Post by kermie on Mar 24, 2016 8:29:46 GMT
Wondering if this scenario would be possible: Contribute in this tax year (15/16) to a Flexible ISA by cashing in some P2P investments Early next tax year 16/17 withdraw the balance and reinvest in P2P. Once an appropriate P2P Innovative Finance ISA is launched, cash in P2P investment and use the flexible ISA reinvestment part to effectively use 15/16 tax allowance to invest in the 16/17 tax year That's my plan. Assuming there is liquidity at the required time, I don't see an issue. The only minor niggle is that you need to identify a Cash ISA which will become flexible on 6th April 2016. But a number of banks/building societies are becoming clearer about that - it's not hard to find a few. More than this, if your old ISAs from previous years also become flexible, then you can do the same with them too. And if not, you can find some ISA accounts which will both (a) allow transfers in and (b) will become flexible on 6th April 2016....allowing you to access your lifetime ISA savings. If this is large, then you need to be very careful about liquidity - you might not be able to get it all back in time (before 5th April 2017) and hence could potentially lose the tax-free status for some of that cash if you're not careful.
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james
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Post by james on Mar 24, 2016 9:14:03 GMT
Wondering if this scenario would be possible: ... Contribute in this tax year (15/16) to a Flexible ISA by cashing in some P2P investments ... Early next tax year 16/17 withdraw the balance and reinvest in P2P. Once an appropriate P2P Innovative Finance ISA is launched, cash in P2P investment and use the flexible ISA reinvestment part to effectively use 15/16 tax allowance to invest in the 16/17 tax year Yes but you must make the redeposit of the 2015/16 part to the ISA from which you withdrew the 2015/16 past year money. MUST. This is not in any way optional. There is no workaround. Do it. If you pay into another one you will use your 2016/17 allowance, not 15/16. Then use an ISA transfer to move the 2015/16 money to the IF ISA.* This is not required for money that is subscribed (new money) in the current tax year. In that case you can transfer the unused ISA allowance to a new ISA by using an ISA transfer (don't try it with a £0 transfer, though it might work) and you can then redeposit the withdrawn current year money into the new one so that you don't lose any of the current year allowance. The withdrawing part of this applies only to flexible ISAs, the transfer and redeposit part should apply to any ISA. If at all possible do moves with ISA transfer rather than redepositing, just to help you to stay sane. The rules around withdrawing and redepositing and transfers are best described as either fiddly or arcane. Expect lots of screwed up descriptions of what is and isn't allowed, not least from customer service reps. *Provided you don't try it right at the end of the tax year there are ways to recover from the mess if you don't do what I told you to do but it will give me a headache trying to explain it correctly and every reader who thinks they understand it will also end up with a headache.
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stevio
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Post by stevio on Mar 24, 2016 9:20:04 GMT
Thanks
I suppose this is scuppered if a P2P innovative finance ISA doesn't allow transfers in?
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james
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Post by james on Mar 24, 2016 12:37:57 GMT
I suppose this is scuppered if a P2P innovative finance ISA doesn't allow transfers in? Right, but I'm sure that some will and if the ones you want don't you can always withdraw, invest outside the ISA in the ones you want to use, then sell, withdraw and return the money to the ISA before the end of the tax year. Rinse and repeat each year until you achieve what you want. I'm about to update my earlier Skipton post a little, just for anyone else inclined to use them.
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