Our Individual Savings Accounts (ISAs) are not flexible, which means that a withdrawal reduces the annual allowance permanently.

Consider the following example:

In May 2022, you've already contributed £17,000 to your Exo ISA. As the annual ISA allowance is currently £20,000, you have £3,000 of contributions left. In November 2022, you need to withdraw £5,000 to cover an unexpected expense.

The balance of your ISA portfolio is now £12,000 and you might think that you're again able to transfer £8,000 into this portfolio until the end of the 2022/2023 tax year.

However, as Exo ISAs are not flexible, the allowance is what is was before you made the withdrawal: £20,000 - £17,000 = £3,000.

Therefore, the maximum amount you'll be able to transfer into this ISA in the current tax year is still £3,000. This means that the maximum invested amount for this tax year will finally be £12,000 + £3,000 = £15,000.

Please note that this doesn't prevent you from investing more money into a General Investment Account (GIA).