If someone has been adding 20K each year to the T212 ISA platform for the past 5 years, and the total deposits in 2025 including the current 2025-26 limit is 100k.
Over these years, assume that the ISA investments have made a profit of 20k; the total money in the account as on date will be 120K ( for simplicity consider all stocks sold and no interest paid).
Now the investor wants to withdraw this 20K profit amount for expenses and keep the 100K of the ISA deposits intact.
If the investor withdraws this 20K today, my questions are :
(1). Will this withdrawal go against the current year’s (2025-26) ISA limit therefore allowing a re-payment to the current year’s ISA amount before the end of this financial year?
(2). Will this withdrawal be treated as a profit withdrawal and therefore cannot be repaid back into the the current year ISA as per the new ISA rules?
(3). How long will it take to get the money from T212 in either case?
Hey, @IntInv - I’ll be happy to clarify this for you
The ISAs that we offer are flexible, meaning you can withdraw funds and replace them within the same tax year without affecting your annual ISA allowance. So, if you withdraw £20,000, you can re-deposit that amount and it won’t count towards your £20,000 annual limit, as long as the funds are returned to your ISA within the same tax year.
If you withdraw that amount and haven’t utilised any part of your ISA allowance for the 2025/2026 tax year, this means that you can then deposit a maximum of £40,000 in one go - the £20,000 that you withdrew and are now paying back, as well as another £20,000 that will utilise the available allowance for the current tax year.
No, the source of the funds doesn’t affect the flexibility. As long as you re-deposit the withdrawn amount within the same tax year, it won’t impact your annual ISA allowance.
We strive to process withdrawals as quickly as possible - while it may take up to 3 business days, some transactions take less time depending on the method used.
Don’t hesitate to let us know if you have any further questions - we will gladly help.
