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    If I withdraw money from my ISA this tax year and re-deposit it in the next financial year does that reduce my next years ISA allowance?

    22 March 2021

    Question by Miltos

    If I withdraw money from my ISA this tax year and re-deposit it in the next financial year does that reduce my next years ISA allowance?

    Answered by Boring Money

    Hi Miltos,

    Unfortunately, even with a flexible ISA if you withdraw this tax year and replace it the next, it would use next year’s allowance. You could delay the withdrawal to the new tax year and you would then be able to replace it.

    Thanks,

    Carrie

    Answered by

    Boring Money

    Here to help you understand your options and make smart money choices.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.