Multiple ISA's

mynameisryan

I've always been told not to keep my eggs in one basket.

I'm 17 at the moment and I am in full time employment.

I opened an ISA with Lloyds TSB and also Barclays.

Although, apparently you can't have two ISA's?

I haven't received any warning / notice, nor was I told when opening up the accounts.

So, am I allowed 2 ISA's? Am I going to go to prison :rotfl: haha

What happens here?

Ryan

Aegis

You're allowed to contribute to one cash ISA and one stocks and shares ISA each year. You can transfer as many times as you like, and can hold as many accounts as you want, so don't worry.

In terms of keeping all your eggs in one basket, having a couple of ISAs isn't likely to put you in the category of people who have to worry about it, as the FSCS will cover up to £50000 per person per banking licence, so you should be well under that level still.

mynameisryan

As far as I'm aware though, they're both cash ISA's?

The Barclays ISA definitely is, and I'm 90% sure the Lloyds is as well.

jem16

mynameisryan wrote: »

As far as I'm aware though, they're both cash ISA's?

The Barclays ISA definitely is, and I'm 90% sure the Lloyds is as well.

When did you open each one?

Baldur

No you are not allowed to subscribe (pay new money into) two Cash ISAs in the same tax year. You signed a declaration when opening each of the accounts, to the effect that you had not and would not subscribe to another Cash ISA in the same tax year - see http://www.hmrc.gov.uk/leaflets/isa-factsheet.htm

The second ISA is invalid.

Suggest that you ring the HMRC ISA helpline, with details of both accounts, to enable an ISA repair to be carried out:

Getting advice


If you have any questions about the tax rules for ISAs

• call our ISA Helpline on 0845 604 1701 (Monday -Thursday 8.30-5.00, Friday 8.30-4.30).

Please have the information about your ISA available when you call.

mynameisryan

jem16 wrote: »

When did you open each one?

I opened them on the same day.

I guess at the moment I'm getting tax free interest on them both?

Ryan

zzzLazyDaisy

The 'year' for cash ISA's starts on 6th April.

So provided you opened one before 6th April and one after, and haven't put any more money in the first after 6th April, you will be okay.

If you mean that they were both opened in this financial year, then you need to close the second one and move that money into the first one. If you don't, the taxman will close the second one down anyway, but by then it will be too late to shift the money back into the first one. (I am assuming the first isn't maxed out - if it is, then I suggest you close the second down and put the money somewhere where it will earn interest from now onwards)

EDIT cross posted

Baldur

zzzLazyDaisy wrote: »

The 'year' for cash ISA's starts on 6th April.

So provided you opened one before 6th April and one after, and haven't put any more money in the first after 6th April, you will be okay.

If you mean that they were both opened in this financial year, then you need to close the second one and move that money into the first one. If you don't, the taxman will close the second one down anyway, but by then it will be too late to shift the money back into the first one. (I am assuming the first isn't maxed out - if it is, then I suggest you close the second down and put the money somewhere where it will earn interest from now onwards)

EDIT cross posted

It's not necessary to close the second account - the error can be repaired if the OP contacts the ISA helpline as already suggested:

Investor error - repairs
12.26 In most cases investors who have subscribed to a disallowed combination of ISAs
or have exceeded the overall subscription limit are not aware that they have made
an error until it is found during the SSO compliance programme, which examines
the annual returns submitted by ISA managers. The manager and investor in this
case are informed of the error by SSO compliance officers.
12.27 Where the ISA manager finds out (usually from the investor) that the investor has
subscribed to a disallowed combination of ISAs, or has exceeded the overall ISA
subscription limit, the manager should advise the investor to phone the ISA
Helpline (0845 604 1701). The Helpline staff will then consider what corrective
action needs to be undertaken and will advise the investor accordingly. Managers
should not take it upon themselves to advise customers as they may not be in
possession of all of the relevant facts, or be certain of the action that HMRC will
take.