Normally, the ISA allowance counts what you pay in, and taking money out doesn’t give any of it back. A flexible ISA is the exception: you can withdraw money and put it back later in the same tax year without it counting again.
How it works
If your ISA is flexible, money you take out can be put back in the same tax year without using up more of your allowance; with an ISA that isn't flexible, anything you put back counts again. Providers don't have to offer flexibility, Lifetime and Junior ISAs can't be flexible, and your provider can tell you which yours is.- Money taken out can be put back in the same tax year without using more of your allowance.
- If the ISA isn't flexible, money you put back counts towards your allowance again.
- Your provider can tell you whether your ISA is flexible.
- Offering flexibility is up to the provider, and Lifetime ISAs and Junior ISAs can't be flexible.
- You can take money out of any ISA at any time without losing the tax benefits, subject to the account's own terms (the Lifetime ISA has its own rules).
GOV.UK’s example
Your allowance is £20,000. You pay £10,000 into an ISA this tax year, then take out £3,000. How much more you can pay in this tax year:
| ISA | Still available this tax year | Why |
|---|---|---|
| Flexible | £13,000 | the £10,000 of allowance left, plus the £3,000 you took out |
| Not flexible | £10,000 | the allowance left only |
When it helps
Flexibility matters when you might need to borrow from your savings and pay them back: an unexpected bill in October that you can repay by March, for example. Without flexibility, putting the money back uses allowance a second time, and if you’ve already used most of the allowance, you may not be able to put it all back.
It doesn’t help across tax years: money taken out in one tax year and put back in the next counts as a new payment.
Which ISAs can be flexible
Flexibility is optional for providers, so check before you open an account, or ask your provider. Flexibility applies to cash you withdraw, so in a stocks and shares ISA it covers cash taken out, not investments. Lifetime ISAs and Junior ISAs can’t be flexible, and a Lifetime ISA has its own rules on withdrawals (withdrawing from a Lifetime ISA).
Mistakes to avoid
- Assuming your ISA is flexible. If it isn’t, money you put back counts as new, and you could go over the allowance (paying in too much).
- Replacing money in a different ISA without checking first: the rules on where a replacement can go are strict, so ask the provider.
- Moving an ISA by withdrawing it. To change provider, use an ISA transfer, not a withdrawal and a new payment.
Related guides
- ISAs guide: the ISA types, the allowance and the main choices in one place
- ISA allowance: how much you can pay in
- Cash ISA rates: what to check before opening a cash ISA
- Easy access savings: withdrawals without the ISA rules