Help: I think 2 ISAs have been opened

aqueoushumour01

Hi. I opened a stocks and shares ISA last week (got my timing a bit wrong :eek: ) Anyway, I went back two days later to put some more money in to take advantage of a fall in the markets. From the documentation I received through, it looks as though rather than topping up my original ISA, nationwide opened up a completely new ISA for me so I now have two. Where do I stand here as isn't it against the rules to open more than one ISA is a tax year (well one cash, and one stocks and shares)?

Blah99

aqueoushumour01 wrote: »

Hi. I opened a stocks and shares ISA last week (got my timing a bit wrong :eek: ) Anyway, I went back two days later to put some more money in to take advantage of a fall in the markets. From the documentation I received through, it looks as though rather than topping up my original ISA, nationwide opened up a completely new ISA for me so I now have two. Where do I stand here as isn't it against the rules to open more than one ISA is a tax year (well one cash, and one stocks and shares)?

It's not against the rules to *open* more than one ISA, it's against the rules to *pay into* more than one ISA. Tell Nationwide to provide a statement showing zero balance/zero payments iinto the ISA they just opened for you, then get them to close it. Carry on with your other one as normal.

aqueoushumour01

I paid into both ISA's. The second time, I wanted to top up my existing ISA, but they've opened another one instead and paid the money that should have gone into the first one into a second ISA. Any ideas what could happen?

Lokolo

Um

If I understand you correctly you have a cash ISA and a stocks and shares ISA?

You can have these each year.

You can only not have 2 Cash ISAs or 2 S&Ss ISA a year.

miserable_ol_so_n_so

Blah99 wrote: »

It's not against the rules to *open* more than one ISA, it's against the rules to *pay into* more than one ISA...........

I laready have a fixed term/rate cash isa for 2008/2009 tax year, the term ends in Dec 2008.
I have several cash isas from previous years too. I am considering consolidating all these into one isa, at Natwest, which is offering a good rate. My question is, am I able to go to Natwest now, and transfer my previous isas (except for the 2008/2009 one), or do I have to wait till end dec, and then transfer all of them, including the 2008/2009 isa?

aqueoushumour01

Lokolo wrote: »

Um

If I understand you correctly you have a cash ISA and a stocks and shares ISA?

You can have these each year.

You can only not have 2 Cash ISAs or 2 S&Ss ISA a year.

I have 1 cash ISA, and 2 S&S ISAs! I went into the bank two days after opening the first one to top up the S&S ISA. However, it appears that a second one has been opened instead, so I now have two S&S in the same cash year!

Lokolo

miserable_ol_so_n_so wrote: »

I laready have a fixed term/rate cash isa for 2008/2009 tax year, the term ends in Dec 2008.
I have several cash isas from previous years too. I am considering consolidating all these into one isa, at Natwest, which is offering a good rate. My question is, am I able to go to Natwest now, and transfer my previous isas (except for the 2008/2009 one), or do I have to wait till end dec, and then transfer all of them, including the 2008/2009 isa?

No as long as you don't deposit new money into it its fine you can trasnfer them all into one.

Blah99

miserable_ol_so_n_so wrote: »

I laready have a fixed term/rate cash isa for 2008/2009 tax year, the term ends in Dec 2008.
I have several cash isas from previous years too. I am considering consolidating all these into one isa, at Natwest, which is offering a good rate. My question is, am I able to go to Natwest now, and transfer my previous isas (except for the 2008/2009 one), or do I have to wait till end dec, and then transfer all of them, including the 2008/2009 isa?

Once you have an asset inside an ISA wrapper you can transfer it between similar ISA wrappers (ie: cash ISA at Barclays to cash ISA at NatWest) without HMRC tax restriction (although the individual ISA accounts might have their own bank's restrictions on them, I can't speak for that).

So yes, if you have 5 cash ISAs from previous years, you can consolidate them all into this year's cash ISA even if you've already paid your limit into it because they're already in the magical tax defeating magnetic resonance shield of their ISA status. Set phasers to stun!

Lokolo

aqueoushumour01 wrote: »

I have 1 cash ISA, and 2 S&S ISAs! I went into the bank two days after opening the first one to top up the S&S ISA. However, it appears that a second one has been opened instead, so I now have two S&S in the same cash year!

Go back into branch, explain that there has been 2 opened and ask them to merge the 2 together (transfer one across to the other and close) and you will be fine.

aqueoushumour01

Lokolo wrote: »

You are allowed to do this. You just cannot put new money into 2 each tax year.

I'm learning every day.

aqueoushumour01

Lokolo wrote: »

Go back into branch, explain that there has been 2 opened and ask them to merge the 2 together (transfer one across to the other and close) and you will be fine.

As it's administered by L&G, I'll see if they can merge, or drop into nationwide and see if they can sort it.