Question 1

If I have withdrawn money from my ISA last tax year, can I replace it in the current tax year?

Accepted Answer

No. You can only replace money withdrawn within the current tax year.

Question 2

Can I withdraw the previous tax year subscriptions from a flexible ISA?

Accepted Answer

Yes. You can withdraw money from current and previous year subscriptions and pay it back into your flexible ISA within the current tax year without it counting towards your current year's ISA allowance.

Question 3

What happens to my ISA allowance if I transfer my existing flexible ISA to Fusion Wealth?

Accepted Answer

Your ISA manager will tell Fusion Wealth how much you can contribute within the current tax year.Where withdrawals have been made from previous years’ subscriptions with the previous ISA manager, these cannot be replaced once the ISA transfers to Fusion Wealth.-------------------------------------------------------------------------Example You have a flexible ISA with another provider and have not yet contributed to your current annual allowance (£20,000) but you have withdrawn £10,000 from your account. With your current provider your flexible allowance is £30,000; this includes the £10,000 you have withdrawn and the £20,000 you have available to contribute for this tax year.As part of the ISA transfer process, the provider will indicate whether a current year subscription has been made or whether no subscription has been made in this tax year. This tells Fusion Wealth whether the money should be applied to the previous year’s subscription, the current year’s subscription, or both when the transfer is received.In this example, when the transfer is applied, your remaining ISA allowance will be your current annual allowance (£20,000) and you will lose the ability to replace the £10,000 withdrawn from the previous years’ subscriptions.

Question 4

What happens if I transfer my Fusion Wealth ISA to a provider that doesn’t offer ISA flexibility?

Accepted Answer

If your new ISA provider does not offer flexibility your ISA will no longer be flexible with your chosen provider.

Question 5

When replacing withdrawn money, does this have to be paid back into the same ISA account it was withdrawn from?

Accepted Answer

Yes, if you hold more than one ISA the replacement money can only be paid back into the ISA originally withdrawn from. For example, if you hold two ISAs with Fusion Wealth and you withdraw money from your ISA1 account, this can only be paid back into the ISA1 account.

Question 6

Can I withdraw securities from my flexible ISA?

Accepted Answer

No you can only withdraw cash on a flexible basis. If you decide to withdraw any of your investments this will not form part of your flexible allowance. You cannot replace the value of any securities you re-register in your own name or place in another type of account, such as a General Investment Account.

Question 7

If I have made a withdrawal and a contribution in the same tax year, will it be credited as a replacement of the withdrawal or a new subscription?

Accepted Answer

Fusion Wealth will allocate any payments towards the replacement of the withdrawal first. After the withdrawal has been replaced, any additional money will count towards your remaining annual ISA limit for new subscriptions.

Question 8

What happens if my ISA account is closed after a withdrawal, can I still replace this money in the same tax year?

Accepted Answer

No, once your ISA account has been closed any flexible allowance will be lost as it is no longer possible to repay money back into the account that it was withdrawn from.

Flexible ISA - FAQ

Flexible ISA - Frequently asked questions