ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 1, 2020 17:20:15 GMT
OR: Adding to an IFISA this tax year using funds previously withdrawn from different other Flexible IFISAs during the current tax year? I vaguely recall reading on here that you can withdraw funds from a Flexible P2P IFISA and that you do not have to re-invest back with that same IFISA Platform but can reinvest the withdrawn Flexible IFISA funds into any another, different Flexible IFISA, as long as within the Tax Year? That is, I have withdrawn funds during the current tax year from three Flexible IFISAs and now want to add all these funds back into just one Flexible IFISA before the end of this tax year. I can't find the answer on HMRC's website nor after a trawl on here, any of you learned fellow investors know if this is allowed? Thank you in advance. A Grateful OzBoy.  |
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Post by Ace on Apr 1, 2020 19:50:55 GMT
I think that what you are saying is only true if you initially invested the ISA funds that you've withdrawn this tax year. If the withdrawn funds were initially invested in a previous tax year they can only be put back where they came from. Obviously, you can put them all back where you withdrew them from this tax year, and then issue transfer request forms in the rapidly approaching new tax year. Sorry, but I'm too busy right now to check, so can't be totally sure.
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ilmoro
Member of DD Central
'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 Apr 1, 2020 20:11:36 GMT
You can withdraw funds current year funds from a flexible Isa and subscribe them to a current year ISA of a different type, you cant subscribe them to an ISA of the same type as that would technically mean you have subscribed to two ISA of the same type in a year. Because any income earned on a flexible ISA can only returned to the ISA it came from this effectively prevents you withdrawing the full amount and subscribing to an ISA of the same type.
From HMRC guidance
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.
Previous year funds can only go back whence they came.
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james100
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Post by james100 on Apr 1, 2020 20:14:22 GMT
OR: Adding to an IFISA this tax year using funds previously withdrawn from different other Flexible IFISAs during the current tax year? I vaguely recall reading on here that you can withdraw funds from a Flexible P2P IFISA and that you do not have to re-invest back with that same IFISA Platform but can reinvest the withdrawn Flexible IFISA funds into any another, different Flexible IFISA, as long as within the Tax Year? That is, I have withdrawn funds during the current tax year from three Flexible IFISAs and now want to add all these funds back into just one Flexible IFISA before the end of this tax year. I can't find the answer on HMRC's website nor after a trawl on here, any of you learned fellow investors know if this is allowed? Thank you in advance. A Grateful OzBoy. Not sure it helps, but I am pretty certain you can withdraw funds which have been invested in a flexi IFISA in the current tax year, and deposit them in a cash ISA before the end of that same tax year. Could be at least a partial solution to maintain some tax protection in case you can't get clarity before Friday then transfer it again wherever you like next week or thereafter? I would guess (and it really is just a guess!) that fund withdrawals outside the scope of current year subscriptions need to be returned to the "home" IFISA and then go through the transfer process in order to maintain tax-free status...but obviously if those homes are on lock-down that might not be attractive...
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Post by tommycatz on Apr 6, 2020 17:17:48 GMT
Not official, but I was lead to believe if you invest too much into different ISAs in the same tax year and you are contacted by the tax office to explain, as long as you correct the over payments and prove it, you be let off for the first occurrence. I have seen the data file format ISA providers submit to HRMC and it has the amount invested, NI number, balance at the start of tax year, balance at the end of tax year, etc.
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morris
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Post by morris on Apr 10, 2020 7:39:23 GMT
I oversubscribed in the last tax year by about £300. I contacted the tax office and asked if I should withdraw the overpayment and they said no. The benefit to me was negligible as the overpayment was into a savings ISA paying 1.1% for 3 months so interest was less than £1.
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