Pls provide Flexible ISA

šŸ’” Feature suggestions & ideas
63

Brilliant.

Now a follow up question for Trading212 to hopefully answer.

As these Flexi ISAs are coming in after the tax year has started, how are you going to calculate how much of our allowance will be flexible?

Thank you.

64

Iā€™m not sure you understand (or maybe I donā€™t understand and have got something wrong). You can put Ā£20k per year into ISAs. If an ISA is flexible you can take money out of the ISA during the year and then LATER in the SAME tax year put the money back into the same ISA and paying the money back into the ISA doesnā€™t count against your allowance. So if you withdraw Ā£5678 you can later put up to Ā£5678 into that ISA and it doesnā€™t count as part of your annual allowance

65

This is wrong (as I understand it but I could be wrong but I am pretty sure based on what Iā€™ve read).

If you invest 12k then you have 8k of your allowance left (as youā€™ve said). If you withdraw Ā£5k you still have 8k of that yearā€™s allowance left. The following year you have another 20k allowance. You do not have 28k allowance the following year.

To explain:

In any tax year you have an allowance that sets the maximum that you can put into ISAs. However, IF you have a flexible ISA you can withdraw money from that during the tax year and if you then put that money back into the same ISA during that tax year that payment into the ISA doesnā€™t count as part of that years allowance. Thus you can put 20k per year into your ISA and it this tax year you could put 12k into your ISA and then withdraw 5k and if you put the 5k back into the same ISA during the same tax year (as you withdrew it) you will still have 8k of this yearā€™s allowance left

66

Wakemeup.

You basically said I am wrong, then described exactly what I had already said.

That takes some skill. Bravo.

67

sorry it quoted the wrong linie. This is wrong. You donā€™t have Ā£15k allowance. You have 10k because you have already used 10k of that years allowance. What you also have is the ability to return the 5k to the same ISA. If it was part of your allowance you could put it in any ISA eg a cash ISAā€¦

68

@mev202 is correct in how the flexible ISA works. You do still have a Ā£15k allowance if you withdraw Ā£5k and had Ā£10k left before, but if you donā€™t transfer it back in that same tax year, the extra Ā£5k doesnā€™t carry so it will reset to Ā£20k again as usual.

From the FAQs https://www.trading212.com/isa

Your 212 ISAs are flexible. This means you can withdraw any amount and deposit it back without impacting your allowance, as long as you do it within the same tax year. The UK tax year runs from 6 April to 5 April.

For example, if you deposit Ā£20,000 on the 6th of April 2024, you can withdraw it on the same day and deposit it back anytime you want until the 5th of April 2025. Any amount you withdraw, including previous years contributions, you can deposit back within the same tax year.

Also, for anyone returning here, as it looks like no one confirmed - both cash and stock ISAs are now flexible and have been for some time.