Flexible isa

Can I transfer replacement subscriptions to another flexible ISA provider?

If you make a withdrawal and then request to transfer your ISA, the ability to replace the withdrawn subscriptions cannot be transferred to the new provider.

Do I have to replace any withdrawals back into the same ISA from which they were made?

If you subscribe to a flexible ISA, and later withdraw these subscriptions in the same tax year, then you will be entitled to make replacement subscriptions into any ISA (including ISA's with other providers) as long as you follow the ISA rules and do not subscribe to more than one ISA of the same type within the tax year.

For example, if you have subscribed to a Flexible Cash ISA, and subsequently withdraw these subscriptions in the same tax year, you would only be entitled to make replacement subscriptions up to the amount subscribed in that tax year to a Stocks and Shares ISA, Lifetime ISA or Innovative Finance ISA, but not another Cash ISA as ISA rules prohibit subscribing to more than one of the same type of ISA in any one tax year.

How are withdrawals and replacements allocated within the isa

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.

If you withdraw cash from a flexible ISA in a subsequent tax year, replacement subscriptions can only be made in that tax year back into the same ISA.

Flexible ISA withdrawals are deemed to be firstly of current year subscriptions, and secondly of previous year funds. Replacements are deemed to be firstly of previous year funds, and secondly of current year subscriptions.

What happens if I take out money from a flexible ISA this tax year and replaces it in the next tax year?

Any funds that are withdrawn and replaced within the same tax year will not affect your annual ISA limit for new subscriptions. However, if you take funds out this year and replace them in the next tax year, they will count towards your subscription limit for that tax year.

Where can I find out more about flexible isas?

For more information about Flexible ISAs click here