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    • saver78910
    • By saver78910 15th Mar 17, 12:43 PM
    • 2Posts
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    saver78910
    ISA confusion
    • #1
    • 15th Mar 17, 12:43 PM
    ISA confusion 15th Mar 17 at 12:43 PM
    Afternoon folks,

    I was always under the impression that only one ISA may be paid into at a time. After some reading, perhaps in fact it is allowed to be actively adding to both a cash ISA and a stocks and shares ISA.

    Yesterday a friend told me no, you can have as many ISAs on the go as you want.

    I am aware that old ISAs sitting there earning interest *but not being topped up* are allowed, but I doubt what my friend says about opening several.

    Now you understand my understanding, here is my question:

    I have a Help To Buy ISA that I opened in January 2016 with the initial £1200 deposit and I have been adding to it at the maximum rate of £200/mo since. In March 2016 I started a regular saver saving £300/mo at 6%, and that has just completed. My plan is to transfer my Help To Buy ISA into a Lifetime ISA when possible. I am wondering the best way to get the Regular Saver money into the LISA too, aware of the LISA's £4000 annual limit but also aware that if I transfer it in from another ISA then it doesn't count towards the limit.

    Is the solution so simple as opening another ISA now, putting the regular saver money into it, then transferring both into a LISA at the same time?

    And, am I missing anything obvious here?

    Many thanks! What a great resource this website is!
Page 1
    • masonic
    • By masonic 15th Mar 17, 12:50 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    • #2
    • 15th Mar 17, 12:50 PM
    • #2
    • 15th Mar 17, 12:50 PM
    There is no benefit to putting the regular saver money into a normal cash ISA now. Whatever you do, you'd need to add this as new money to your LISA during the next tax year and it would come out of your £4000 annual allowance.
    • bowlhead99
    • By bowlhead99 15th Mar 17, 2:18 PM
    • 6,727 Posts
    • 11,992 Thanks
    bowlhead99
    • #3
    • 15th Mar 17, 2:18 PM
    • #3
    • 15th Mar 17, 2:18 PM

    I am aware that old ISAs sitting there earning interest *but not being topped up* are allowed, but I doubt what my friend says about opening several.
    Originally posted by saver78910
    Your friend is wrong if they think you can have "current year contributions" into more than one account each of the major 3 categories:

    Cash ISA
    S&S ISA
    Intelligent Finance ISA (very few providers operate in this area)

    A help to buy is a type of cash ISA so you can't open another of those this year.

    The only exception is, you could open multiple cash ISAs with one provider containing current-year money, *if* that one provider is willing and able to aggregate them all together and call it one big Cash ISA for HMRC reporting purposes.
    I am wondering the best way to get the Regular Saver money into the LISA too, aware of the LISA's £4000 annual limit but also aware that if I transfer it in from another ISA then it doesn't count towards the limit.
    Be careful not to mix the rules up. If you transfer it from another ISA, and that ISA is anything other than a HTB ISA containing pre-2017/18 contributions, then it *does* count against the £4000 limit.

    It just doesn't count against the much bigger £20,000 limit for total new contributions from normal bank accounts into ISAs during 2017/18 (that £20k being next year's total ISA allowance, just like £15.2k is total allowance this year).
    • saver78910
    • By saver78910 15th Mar 17, 2:25 PM
    • 2 Posts
    • 0 Thanks
    saver78910
    • #4
    • 15th Mar 17, 2:25 PM
    • #4
    • 15th Mar 17, 2:25 PM
    Thank you both very much! I was not aware of the different rules between the £4k ISA limit and the £20k annual limit. Everything is now much clearer.
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