Can T212 add Flexible ISA, I think it will be useful as some stock I would like to but not part of ISA.
I would like buy some stocks for short-term and then move the money back to ISA.
Is this allowed under Flexible ISA? Are there any plans for Flexible ISA?
Ideally a flexible ISA would be great, but I don’t think it’s on the card to be implemented anytime soon. (That i’m aware of).
In a flexible ISA the money you withdraw would count against your allowance, but when you re-deposit only the withdrawn amount could be put back in and additional funds will use up more allowance. you also have to consider that since you are investing outside of the ISA, you will have to keep track of how much capital gains and dividends are made, so if you end up passing the allowance threshold you would need to pay taxes on those funds before deciding how much to put in the ISA again.
If you are wanting to invest in shares that you can’t with an ISA, just do so from the beginning as it is less complicated. You have to earn a certain amount before you pay the taxes anyways.
you deposit £20k into your ISA and withdraw £5k for short-term trades which return you £7.5k. your flexible ISA would have adjusted your limit allocation back to £15k because of the withdrawal, however that means you can only deposit the £5k you took out and not the £7.5k you made in the trades.
say you withdrew £10k for short-term trades and your allocation adjusted back to £10k. if you made £15k profit in trades, not only could you deposit just the initial £10k back into your ISA, you have to pay capital gains taxes for exceeding the £12.3k allowance by £2.7k as it’s not inside the ISA tax-wrapper.
Since T212 doesn’t have plans for a Flexible ISA yet, you might as well keep the money inside your ISA and set aside money for the short-term trades ahead of time, then use the profits to fill your ISA limit while still having funds to trade.