This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

flexible isa rules

marcko
Posts:14
Joined:Wed Aug 06, 2008 3:38 pm
flexible isa rules

Postby marcko » Fri Mar 10, 2017 1:01 pm

If current year money is withdrawn from a flexible cash isa, can that money be used to subscribe to a stocks and shares isa in the current year without having to replace it into the flexible cash isa it was withdrawn from? HMRC website and helpline have not been able to clarify this for me. Thanks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: flexible isa rules

Postby pawncob » Fri Mar 10, 2017 5:22 pm

Another key rule is you must replace the money in the same ISA account you took it out from, with two exceptions.

If a full withdrawal results in the automatic closure of your account you can open a second cash ISA you can put money into (but you can only do this once per tax year).
Remember, flexibility works on three types of ISAs: cash ISAs, innovative finance ISAs and cash held in a stocks and shares ISA. If you withdraw current year's cash from one type, you are allowed to replace it in another type, eg, withdraw from a cash ISA, replace in an innovative finance ISA.

http://www.moneysavingexpert.com/savings/flexible-ISAs
With a pinch of salt take what I say, but don't exceed your RDA

marcko
Posts:14
Joined:Wed Aug 06, 2008 3:38 pm

Re: flexible isa rules

Postby marcko » Fri Mar 10, 2017 9:37 pm

yes i read that on their website and similar on a few other websites (like wikipedia). However, when i contacted the telephone helpline of my isa providers, both my cash isa provider and my stocks and shares isa provider told me different, although i have learnt never to trust what the people who staff these telephone helplines tell me. Also, I cant figure out where these websites are getting their info from, since the HMRC website does not provide the info that websites like moneysavingexpert give, and the HMRC advisers cant find it either. The plot thickens


Return to “Savings & Investments, Pensions & Retirement”

cron