criston
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Post by criston on Aug 26, 2020 15:47:37 GMT
I have been withdrawing previous years IFISA funds from some platforms in dribs & drabs, as at the moment I cannot be bothered with continually dealing with transfers to other IFISA managers.
I know I can replace these funds before the end of the tax year, but they are not platforms I intend investing in again.
Can I replace in one lump, the total funds withdrawn, let's say in Zopa, before the end of the tax year, without actually investing it, by leaving it as cash; then in the next tax year, get it transferred to my chosen IFISA manager ?
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Post by Ace on Aug 26, 2020 16:05:31 GMT
I have been withdrawing previous years IFISA funds from some platforms in dribs & drabs, as at the moment I cannot be bothered with continually dealing with transfers to other IFISA managers. I know I can replace these funds before the end of the tax year, but they are not platforms I intend investing in again. Can I replace in one lump, the total funds withdrawn, let's say in Zopa, before the end of the tax year, without actually investing it, by leaving it as cash; then in the next tax year, get it transferred to my chosen IFISA manager ? No. You can only replace previous years ISA funds back to the place you withdrew them from, and only if their ISAs are flexible.
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criston
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Post by criston on Aug 26, 2020 16:21:54 GMT
Ace. I did not word it correctly.
Can I replace in one lump, the total funds withdrawn from say Zopa, back in Zopa, before the end of the tax year, without actually investing it, by leaving it with Zopa in cash; then in the next tax year, get it transferred to my chosen IFISA manager ?
I note your Lending works situation is the same as my own. If they are up & running before the end of the tax year, could this apply.
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dead-money
Rocket to the Moon
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Post by dead-money on Aug 26, 2020 16:57:38 GMT
I have been withdrawing previous years IFISA funds from some platforms in dribs & drabs, as at the moment I cannot be bothered with continually dealing with transfers to other IFISA managers. I know I can replace these funds before the end of the tax year, but they are not platforms I intend investing in again. Can I replace in one lump, the total funds withdrawn, let's say in Zopa, before the end of the tax year, without actually investing it, by leaving it as cash; then in the next tax year, get it transferred to my chosen IFISA manager ? No. You can only replace previous years ISA funds back to the place you withdrew them from, and only if their ISAs are flexible. I thought Flexible ISAs only allowed replacing withdrawn contributions within the current tax year. The ISA allowance resetting at the commencement of each tax year.
So last years withdrawals would be new contributions in this year.
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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 Aug 26, 2020 16:58:48 GMT
Ace. I did not word it correctly. Can I replace in one lump, the total funds withdrawn from say Zopa, back in Zopa, before the end of the tax year, without actually investing it, by leaving it with Zopa in cash; then in the next tax year, get it transferred to my chosen IFISA manager ? I note your Lending works situation is the same as my own. If they are up & running before the end of the tax year, could this apply. Yes, providing its a Flexible ISA, as long as you return the total sum withdrawn this financial year into the relevant platforms ISA wrapper prior to the end of the tax year they will retain their tax free status. I assume Zopa has a cash holding account within the ISA and any auto invest is turned off. Basically funds can be in loans or cash within an IFISA. Usual advice caveats apply. Check with the platform to be sure.
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ilmoro
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Post by ilmoro on Aug 26, 2020 17:04:49 GMT
No. You can only replace previous years ISA funds back to the place you withdrew them from, and only if their ISAs are flexible. I thought Flexible ISAs only allowed replacing withdrawn contributions within the current tax year. The ISA allowance resetting at the commencement of each tax year.
So last years withdrawals would be new contributions in this year.
No, you can withdraw any holdings, previous or current year money. Previous year money must be returned where it came from, current year money can be subscribed to a current year ISA of a different type but any income must be returned to the original account. Where ISA hold current & previous year money, money removed counts as current year (up to some subscribed) then previous year, deposits count as previous year then current
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criston
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Post by criston on Aug 26, 2020 17:05:57 GMT
Ace. I did not word it correctly. Can I replace in one lump, the total funds withdrawn from say Zopa, back in Zopa, before the end of the tax year, without actually investing it, by leaving it with Zopa in cash; then in the next tax year, get it transferred to my chosen IFISA manager ? I note your Lending works situation is the same as my own. If they are up & running before the end of the tax year, could this apply. Yes, as long as you return the total sum withdrawn this financial year into the relevant platforms ISA wrapper prior to the end of the tax year they will retain their tax free status. I assume Zopa has a cash holding account within the ISA and any auto invest is turned off. Basically funds can be in loans or cash within an IFISA. Usual advice caveats apply. Check with the platform to be sure. Thanks. I was referring to current financial year withdrawals & Zopa do have a cash holding account which enables auto invest to be turned off.
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ilmoro
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Post by ilmoro on Aug 26, 2020 17:13:17 GMT
Here is the relevant HMRC guidance
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Post by Ace on Aug 26, 2020 17:13:59 GMT
Ace. I did not word it correctly. Can I replace in one lump, the total funds withdrawn from say Zopa, back in Zopa, before the end of the tax year, without actually investing it, by leaving it with Zopa in cash; then in the next tax year, get it transferred to my chosen IFISA manager ? I note your Lending works situation is the same as my own. If they are up & running before the end of the tax year, could this apply. You can replace whatever you have withdrawn from Zopa this tax year back into Zopa this tax year (the Zopa Isa is flexible) . However, when I looked at my account and went through the motions of making a deposit it said that my new funds would be automatically queued for investment. There didn't seem to be any way to change this to send them to the holding account (I already have reinvesting turned off). I would expect that you would be able to cancel the investment and return the cash to holding before it was invested to achieve your aim, since the last email I received from Zopa said the queue was 16 days long. I should add that I don't have an ISA account with Zopa, so can't test this for you. EDIT: crossed with many posts above as I took ages looking for the 'send my deposited funds to holding' setting. I didn't find it!
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criston
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Post by criston on Aug 26, 2020 17:33:38 GMT
Ace. I did not word it correctly. Can I replace in one lump, the total funds withdrawn from say Zopa, back in Zopa, before the end of the tax year, without actually investing it, by leaving it with Zopa in cash; then in the next tax year, get it transferred to my chosen IFISA manager ? I note your Lending works situation is the same as my own. If they are up & running before the end of the tax year, could this apply. You can replace whatever you have withdrawn from Zopa this tax year back into Zopa this tax year (the Zopa Isa is flexible) . However, when I looked at my account and went through the motions of making a deposit it said that my new funds would be automatically queued for investment. There didn't seem to be any way to change this to send them to the holding account (I already have reinvesting turned off). I would expect that you would be able to cancel the investment and return the cash to holding before it was invested to achieve your aim, since the last email I received from Zopa said the queue was 16 days long. I should add that I don't have an ISA account with Zopa, so can't test this for you. EDIT: crossed with many posts above as I took ages looking for the 'send my deposited funds to holding' setting. I didn't find it! I will re declare my ISA, fund £1 & see what happens. I see what you mean though.
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Greenwood2
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Post by Greenwood2 on Aug 27, 2020 7:04:01 GMT
You can replace whatever you have withdrawn from Zopa this tax year back into Zopa this tax year (the Zopa Isa is flexible) . However, when I looked at my account and went through the motions of making a deposit it said that my new funds would be automatically queued for investment. There didn't seem to be any way to change this to send them to the holding account (I already have reinvesting turned off). I would expect that you would be able to cancel the investment and return the cash to holding before it was invested to achieve your aim, since the last email I received from Zopa said the queue was 16 days long. I should add that I don't have an ISA account with Zopa, so can't test this for you. EDIT: crossed with many posts above as I took ages looking for the 'send my deposited funds to holding' setting. I didn't find it! I will re declare my ISA, fund £1 & see what happens. I see what you mean though. Would it not be simpler to just put it in a (flexible) cash ISA until you decide where to put it permanently, if it's this years contributions?
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criston
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Post by criston on Aug 27, 2020 7:15:16 GMT
I will re declare my ISA, fund £1 & see what happens. I see what you mean though. Would it not be simpler to just put it in a (flexible) cash ISA until you decide where to put it permanently, if it's this years contributions? The funds have been put to use. I just want to be able to eventually regain the tax advantage in case I need it.
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criston
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Post by criston on Aug 28, 2020 15:48:09 GMT
Ace. I did not word it correctly. Can I replace in one lump, the total funds withdrawn from say Zopa, back in Zopa, before the end of the tax year, without actually investing it, by leaving it with Zopa in cash; then in the next tax year, get it transferred to my chosen IFISA manager ? I note your Lending works situation is the same as my own. If they are up & running before the end of the tax year, could this apply. You can replace whatever you have withdrawn from Zopa this tax year back into Zopa this tax year (the Zopa Isa is flexible) . However, when I looked at my account and went through the motions of making a deposit it said that my new funds would be automatically queued for investment. There didn't seem to be any way to change this to send them to the holding account (I already have reinvesting turned off). I would expect that you would be able to cancel the investment and return the cash to holding before it was invested to achieve your aim, since the last email I received from Zopa said the queue was 16 days long. I should add that I don't have an ISA account with Zopa, so can't test this for you. EDIT: crossed with many posts above as I took ages looking for the 'send my deposited funds to holding' setting. I didn't find it! As you say with Zopa, repayments can be set to go to holding account, but new money goes straight to uninvested money. To get my £1 out the process was - Under 'Your Portfolio' Click on 'Manage to the right of 'ISA plus' to find 'uninvested money'. Click on 'remove uninvested money' then 'Yes-move to holding'. Long winded but it works, but only if there is a delay, as you say 16 days. I would have to be careful if that came down to immediate, which is unlikely.
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