Flexible ISA question

[UnclePhilip]

I am aware that one can now withdraw money from an ISA and still put it back; subject to time limits etc

I have tried to see if what I want to do is possible, but failed, and have asked my new provider, but while waiting would be grateful to know from anyone here who may know.

I'd like to withdraw say £2,000 from a stocks/shares ISA to which I haven't subscribed for a number of years, and put it into an ISA which I opened recently, and to which I've already subscribed the max £20,000.

Is this permissible, or is it stretching "flexible ISA" beyond what's allowable?

It would save the expense of authorising the new provider to suck the cash directly from the old one

Uncle

[XFool]

AFAIK the answer is no. Though I haven't checked.

The idea of a Flexible ISA is that it is a specific product, or condition of a specific existing ISA. In other words, in my understanding it is to do with withdrawals and deposits to a specific ISA product. It is not, AFAIK, anything to do with transfers.

Indeed, I can't really see how it could be as how would different suppliers know what you had done with another supplier? They would though have records relating to your account with one of their own products.

[Chrysalis]

OP, you could of course just do the usual ISA transfer from one provider to the other. It shouldn't cost, but can time time/hassle.

[Alaric]

and put it into an ISA which I opened recently, and to which I've already subscribed the max £20,000.

As I understood it, the concept of a flexible ISA was that you could take out and put back some or all of the £ 20,000 between now and the end of the tax year. Putting money in from a previous year's ISA still falls under the transfer rules, meaning that you have to ask the previous provider to transfer it on your behalf.

[PinkDalek]

and put it into an ISA which I opened recently, and to which I've already subscribed the max £20,000.

As I understood it, the concept of a flexible ISA was that you could take out and put back some or all of the £ 20,000 between now and the end of the tax year. Putting money in from a previous year's ISA still falls under the transfer rules, meaning that you have to ask the previous provider to transfer it on your behalf.

It wouldn't appear to be limited to the year's subscription. This Barclays infographic uses £100,000 as an example:

https://www.barclaysstockbrokers.co.uk/ ... e-isa.aspx

FISA rules apply on any withdrawal made from a flexible ISA, e.g. if your ISA has £100,000 in it, you can withdraw some or all of that and replenish it before the end of the same tax year. Note: withdrawals from a flexible ISA can only be replaced into the same account within the same tax year.

There is more here:

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

I haven't studied it.

[melonfool]

OP, you could of course just do the usual ISA transfer from one provider to the other. It shouldn't cost, but can time time/hassle.

Yeah, I've done this a few times, why isn't that an option here?

Mel

[Maroochydore]

It wouldn't appear to be limited to the year's subscription. This Barclays infographic uses £100,000 as an example:

Correct, the amount isn't limited by the annual subscription limit. The flexibility applies to the single account, not moving money bewteen accounts.

I've taken out £16 000 from one of my ISA accounts and the header states I can still invest £36 000 this year. That would be the £16 000 returned plus this year's allowance which I haven't used.