What is a flexible ISA?
All you need to know about the new flexibility for cash ISAs.
From 6 April 2016, ISAs can be flexible if their terms and conditions allow.
If your ISA is flexible you can withdraw cash from your ISA and replace it in the same tax year without the replacement amount counting further towards your ISA subscription allowance for that tax year. See below for details of which Triodos ISAs are flexible.
|Here’s an example
On 10 September 2016 Jo subscribes £10,000 into a flexible ISA, for the current tax year.
On 18 December, Jo withdraws £5,000 from this flexible ISA, current year's subscriptions are now £5,000.
On 2 February 2017, Jo makes a deposit of £5,000 into this flexible ISA - this replaces the £5,000 withdrawn earlier in the tax year and current year's subscriptions are now £10,000. Jo can therefore subscribe £5,240 up to and including 5 April 2017.
- You can withdraw and replace any of the cash in your flexible ISA account whether it's cash you've put in during the current tax year (current year's subscriptions) and/or money you've put in during a previous tax year (previous years' subscriptions).
- Any withdrawals you make will reduce current year's subscriptions first. Once there are no current year's subscriptions left then previous years' subscriptions will be reduced, creating a 'replaceable amount'.
- Any subsequent deposits made during the same tax year will replace any available replaceable amount first. Once the replaceable amount has been fully replaced then deposits will count towards current year's subscriptions.
|On 5 August 2016, Jo's flexible ISA has a balance of £30,000. The balance consists of £10,000 current year's subscriptions and £20,000 previous years' subscriptions.
On 12 January 2017, Jo withdraws £25,000 - this brings the current year's subscriptions to nil and creates an available replaceable amount of £15,000 which Jo can use up until 5 April 2017. The balance on the account is now £5,000.
On 27 February 2017, Jo makes a deposit of £22,000 - this replaces the full available replaceable amount of £15,000 and £7,000 counts towards the current year's subscriptions. The balance on the account is now £27,000.
- Replacements of current year's subscriptions can be made into any current year ISA, but cannot breach the 'one ISA of each type per tax year' rule.
|On 3 June 2016, Jo subscribes £5,000 into a flexible cash ISA, for the current tax year.
On 1 July 2016, Jo withdraws £5,000, which reduces the current year's subscriptions to £0 - they now have a current year subscription allowance of £15,240 which can be deposited back into the same flexible cash ISA or into a stocks and shares ISA or innovative finance ISA.
- Replacements of previous years' subscriptions must be made into the ISA from which they were withdrawn.
- Any available replaceable amount you have not replaced at the end of the tax year will be lost.
- If you transfer the whole of your flexible ISA to another ISA provider, any replaceable amount available at the time of transfer will be lost.
- If you transfer part of your flexible ISA to another provider so that some previous years’ subscriptions remain with your original provider (i.e. a balance is left in your account, rather than it all being transferred), you will still be able to use any replaceable amount available to you prior to the ISA transfer.
Which Triodos ISAs are flexible ISAs?
From 6 April 2016, the following Triodos ISAs are flexible (subject to change; please see our Terms and Conditions for personal banking accounts for confirmation of which of our ISAs are flexible ISAs):
- Triodos Online Cash ISA
- Triodos Cash ISA
- Triodos 90 Day Notice Online Cash ISA
If you have one of these accounts, it will be a flexible ISA regardless of whether you opened your account before or after 6 April 2016.
The Triodos Fixed Rate Cash ISAs, Ethical Stocks and Shares ISA and Junior ISA are not flexible.
What if I change the type of Triodos ISA I have?
If you change your Triodos flexible ISA to another type of Triodos flexible ISA, you will still be able to use any available replaceable amount.
If you change your Triodos flexible ISA to a Triodos non-flexible ISA, any available replaceable amount you have not replaced at the time the account is changed will be lost.
If you change your Triodos non-flexible ISA to Triodos flexible ISA, you will be able to withdraw and replace cash from the time of change in accordance with the flexible ISA rules.
How can I keep track of my flexible ISA subscriptions and any 'replaceable amount(s)' available to me?
If you log into Triodos Internet Banking, select Account Management then ISA Declaration Management, you will be able to see how much you have subscribed to your ISA in the current tax year and any replaceable amounts of previous years’ subscriptions available to you.
Alternatively, if you do not have Internet Banking, please email us at firstname.lastname@example.org or call us on 0330 355 0355 or 0117 973 9339 and our team will be happy to provide you with this information.
You can find more details about how flexible ISAs work in the leaflet found here .