The Lemon Fool

For those with HL S&S ISA accounts who would like to (or might like in the future to) withdraw cash for a period of time and pay it back in without it impacting on that years allowance, you might like to register your interest with them. I just have and if they get enough interest from customers they might make these accounts flexible as other providers already have.

You sure can pay it back next tax year without it affecting this tax year's allowance.

JMN2 wrote:You sure can pay it back next tax year without it affecting this tax year's allowance.

Fluke is writing about this:

https://www.moneysavingexpert.com/savings/flexible-ISAs

In a nutshell, where your ISA is flexible...

You can take money out of a cash ISA at any point, and return it in the same tax year (by 5 April), without it reducing your current year's allowance, which is £20,000.


GS

But according to the guide which is quoted, any element of a Stocks and Shares ISA which is not cash cannot be flexible. That is what I have always understood anyway, so I wonder if the OP is referring to something else?

Dod

Dod101 wrote:But according to the guide which is quoted, any element of a Stocks and Shares ISA which is not cash cannot be flexible. That is what I have always understood anyway, so I wonder if the OP is referring to something else?

Dod

Vanguard is flexible.

I inquired of H-L some time ago (probably about this time last year), and got the same reply as the OP here: namely some waffle about enough people have to badger them about it.

Thanks uncleebenezer, that is what I meant. I have deliberately been building up a cash reserve in my ISA for the last year with view to paying myself a steady monthly income this year, ie transitioning (my HYP) from build to drawdown. I don’t actually need the cash atm and its earning no interest so I thought I might take it out and stick in some sort of interest bearing account while I decide whether or not to reinvest. Some providers allow the cash part of stocks and shares ISA accounts to be ‘flexible’ in the same way that many cash ISAs are, ie that you can take some or all of it out and, so long as you pay it back in before the end of the tax year it won’t affect your allowance. To be fair to HL there probably isn’t much call for it, but in my case it would be dead handy. So the decision now is do I reinvest some of it, all of it, leave it there earning no interest, or take it out and forfeit the tax protection. Don’t know I’m still pondering.

Fluke wrote:So the decision now is do I reinvest some of it, all of it, leave it there earning no interest, or take it out and forfeit the tax protection. Don’t know I’m still pondering.

You don't mention the option of transferring it to a cash ISA, where you could get up to about 1.3% interest for an easy access one.

You could then transfer it back to the shares ISA if you want to.

Scott.

swill453 wrote:You don't mention the option of transferring it to a cash ISA, where you could get up to about 1.3% interest for an easy access one.
You could then transfer it back to the shares ISA if you want to.

I'm pretty sure it's within the rules to transfer the money to a flexible cash ISA, withdraw some, pay it back in using the flexibility, and transfer it back to the s&s ISA. This basically gets you a flexible s&s ISA at the cost of some more work and delay.

You don't mention the option of transferring it to a cash ISA, where you could get up to about 1.3% interest for an easy access one.

What even if you’ve used up your allowance for this year? If so thats the answer.

I should explain that I have used up my £20k allowance for this year already by bed-n-isa’ing shares I’d held in my direct dealing account.

This is a new one to me. Is there any limit on the amount that can be withdrawn and re-invested within the year?

I am presently holding quite a lot of cash in my HL Vantage ISA earning zip and I appreciate that, at present, this is not 'flexible' so would have to go the transfer-ton-cash-ISA route if I wanted a small % and to stay within ISA wrapper.

However, if my S&S ISA were a 'flexible' one, would I be able to withdraw out of ISA wrapper, and then re-invest before end year, sums greater than the annual £20k?

DB

However, if my S&S ISA were a 'flexible' one, would I be able to withdraw out of ISA wrapper, and then re-invest before end year, sums greater than the annual £20k?

With flexible ISA's you can pay back in anything up to the amount you drew out. Any more than that and it will come out of your current year allowance (20k). GoSeigen posted a good link above which explains it.

Fluke wrote:

You don't mention the option of transferring it to a cash ISA, where you could get up to about 1.3% interest for an easy access one.

What even if you’ve used up your allowance for this year? If so thats the answer.

Yes, transfers aren't affected by the annual allowance.

Scott.