HMRC has issued a technical consultation on the new ISA rules which allow taxpayers to withdraw and top up savings within a defined limit in a single tax year
These regulations amend the existing ISA Regulations to establish a new flexibility within ISA which allows savers to replace cash they have withdrawn from their account earlier in a tax year, without this replacement counting towards the annual ISA limit for that year.
This flexibility will be available in relation to both current year and earlier years’ ISA savings where provided for in the terms and conditions of a ‘flexible ISA’.
In the 2015-16 tax year, the maximum amount which can be saved in ISAs is £15,240. Savings can be made into one cash ISA and one stocks and shares ISA each tax year.
HMRC has published draft regulations, together with a draft explanatory memorandum and a Tax Information and Impact Note (TIIN). These changes will be implemented in the Individual Savings Account Regulations 1998.
The consultation will close on 8 November 2015.
This measure was announced in the Budget in March 2015.
The consultation details are available here
Any comments on this draft should be sent by email to savings.audit@hmrc.gsi.gov.uk