Flexible ISAs could help beat Hunt’s capital gains and dividends tax crackdown | Personal Finance | Finance

Mr Greaves explained: “For example, you’re selling your home and buying a new one and need £30,000 to pay stamp duty or other costs – which you expect to recoup from the sale of your old property. If you have funds inside a flexible ISA, you can withdraw it and then replace it in full in the same tax year, plus the annual £20,000 allowance, without losing its tax wrapper. If the ISA isn’t flexible then you’re back to square one when you withdraw it.”

Rather than counting each deposit towards a person’s £20,000 annual allowance, Mr Soleiman said a flexible ISA calculates the net balance of a person’s ISA.

He continued: “What’s more, you can withdraw previous years’ balances and deposit them back, as long as you do so within a single tax year (by April 5). That’s a big plus if you decide you need to access your savings, say for a big purchase – like a car or a deposit on a new home.”

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