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

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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 Carrie Garrett

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

Carrie Garrett

Financial Adviser

I'm a busy mum working in an IFA practice where every day is different. I enjoy being able to make a tangible difference in my clients financial future through effective use of cash flow forecasting.