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Post by Deleted on Oct 17, 2018 10:53:44 GMT
I placed 20k into a flexible Cash ISA this tax year. Do I have any options available to move a portion of this to an IFISA?
I understand if I instruct a transfer it would need to be for the full amount?
Am I simply allowed to withdraw a portion and then deposit into an IFISA or have I made my bed for this tax year?
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bigfoot12
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Post by bigfoot12 on Oct 17, 2018 12:03:59 GMT
Funding Circle for an iPad?
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Greenwood2
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Post by Greenwood2 on Oct 17, 2018 12:24:13 GMT
I placed 20k into a flexible Cash ISA this tax year. Do I have any options available to move a portion of this to an IFISA? I understand if I instruct a transfer it would need to be for the full amount? Am I simply allowed to withdraw a portion and then deposit into an IFISA or have I made my bed for this tax year? No, You cannot subscribe to more than one ISA in a year (unless you split between types of ISA). I'm pretty sure if it's a flexible ISA it has to go back into the ISA it came from, ie, you don't lose the allowance if you take it out (as used to be the case), you can put it back in. Edit: And yes you can move the full amount of the current year's ISA to another one. If both allow it. I'm sure someone who knows more about it than me will be along to confirm or otherwise. 
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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 Oct 17, 2018 12:51:25 GMT
Actually AIUI Flexible ISA rules allow you to remove funds from a current year of one type and invest in a current year ISA of a different type without doing a transfer. The withdrawn funds are treated as if they were never invested in the original ISA. The only exception is any interest/capital growth earned on the current year funds which has to remain in the original ISA & be transferred (it can be withdrawn but must be replaced)
Section 6.80 onwards specifically (dated 2015 but think still applies)
Withdrawals of current year subscriptions, can effectively be replaced in any current year ISA, but cannot breach the ‘one ISA of each type per tax year’ rule.
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.
Usual disclaimer on advice. Check with providers for T&Cs etc
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Post by Deleted on Oct 17, 2018 20:35:30 GMT
Thanks ilmoro , assuming this guidance hasn't been altered since then, it does actually seem crystal clear that I can withdraw from the flexible ISA and deposit into an IFISA or S&S ISA legitimately. I'm somewhat surprised as when I was struggling to find a definitive answer my own thoughts would also have led me to assume Greenwood2 was correct in his thinking! I guess it's time to put it to the test then .... |
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macq
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Post by macq on Oct 18, 2018 7:38:17 GMT
Thanks ilmoro , assuming this guidance hasn't been altered since then, it does actually seem crystal clear that I can withdraw from the flexible ISA and deposit into an IFISA or S&S ISA legitimately. I'm somewhat surprised as when I was struggling to find a definitive answer my own thoughts would also have led me to assume Greenwood2 was correct in his thinking! I guess it's time to put it to the test then .... Please let us know how you get on as i was also under the impression that the money had to return to the account it came from hence why you transfer even a flexible ISA and not just withdraw it
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Greenwood2
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Post by Greenwood2 on Oct 18, 2018 8:22:31 GMT
Reading the info given by ilmoro it seems the current year subscriptions to flexible ISAs can be moved to other current year flexible ISAs simply by withdrawing and paying in, but withdrawal of previous years subscriptions have to go back to the same ISA. So we are all right, sort of.
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macq
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Post by macq on Oct 18, 2018 10:27:20 GMT
Reading the info given by ilmoro it seems the current year subscriptions to flexible ISAs can be moved to other current year flexible ISAs simply by withdrawing and paying in, but withdrawal of previous years subscriptions have to go back to the same ISA. So we are all right, sort of. Having been in a building society this morning i was told that cash removed from their ISA has to go back into the same account when i mentioned other products s&s or IFISA i was directed to bsa.org.uk and their fact sheets (so guess their confused as well  )
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