I have made a number of contributions and withdrawals to/from my Trading212 Cash and Stocks ISAs this tax year. This is in addition to contributions to ISAs with other providers.
For example, if I contributed £5,000 to my T212 Cash ISA, withdrew this to an external account, and then contributed that £5,000 to my T212 Stocks ISA (i.e. not using the manage funds function), would this be considered as using up £5,000 or £10,000 of my ISA allowance? The reason for my question is that my contributions to other ISAs would take me above the £20,000 ISA limit if the T212 contributions were counted as £10,000 in total.
I hope that makes sense - I realise I’ve got myself into a bit of a confusing situation but I think my question boils down to whether or not ISA flexibility applies across both types of T212 ISA (whether they’re considered as the same account), as I understand that it is necessary to pay money back into the same ISA in order for it not to affect the £20,000 allowance.
If I have indeed gone above the allowance, it would be helpful to know what I need to do to rectify this.
Thank you. Can you explain why? Is this because the T212 Cash and Stocks ISAs are considered by HMRC to be the same account? As I understand that money must be paid back into the same account for it not to affect the allowance, but I can see that I have separate account numbers for my Cash and Stocks ISAs.
With a flexible ISA, the provider has to report the balance at the end of the tax year.
As such, what you have done will result in £5,000 being reported. Having said that, it would be better if you did use the transfer option with the app to move funds between the ISAs.