Can you OPEN another ISA for this year if you have already funded one?

ses6jwg

Just to clear things up, if there is a market leading ISA coming out soon, can you OPEN one this year, and fund it next tax year if you have already opened and funded one for this year?

DavidHayton

ses6jwg wrote: »

Just to clear things up, if there is a market leading ISA coming out soon, can you OPEN one this year, and fund it next tax year if you have already opened and funded one for this year?

HMRC will not let you contribute to two ISAs in the same tax year. They are quite happy for you to open a second one (if, for example, you want to transfer an existing ISA from somewhere else) but you mustn't put any new money into it before the 6th of April.

David

rb10

HMRC would be fine with that, as you wouldn't be funding two in one tax year.

The only issue would be with the individual bank - some banks will only fix the interest rate on the date that funds are received.

ahxcjb

Hi, so just to confirm, as I am in a similar position. I currently have a Barclays ISA which I opened in February 2010. This paid a bonus for the first 12 months. Now the bonus period is at an end. I have paid in my maximum allowance for this tax year. Can I open another ISA with a new provider next week and then TRANSFER my ISA across (making sure I don't contribute an opening £1 to the account)? I would then start funding it with new payments from April 6, 2011.

Many thanks!

oldfella

ahxcjb wrote: »

Hi, so just to confirm, as I am in a similar position. I currently have a Barclays ISA which I opened in February 2010. This paid a bonus for the first 12 months. Now the bonus period is at an end. I have paid in my maximum allowance for this tax year. Can I open another ISA with a new provider next week and then TRANSFER my ISA across (making sure I don't contribute an opening £1 to the account)? I would then start funding it with new payments from April 6, 2011.

Many thanks!

assuming the provider lets you open an account without subscribing, yes you can

longwalks1

Sorry for jumping in too
Could I open a S&S ISA before April this year, with up to £10,200 worth of shares, then after 6th April open another, with up to £10,200 of shares so I had 2 ISA's I can use to trade with?

Thanks in advance

AirlieBird

You can have as many ISAs as you want. But all subscriptions (deposits) for the current tax year must be held together in the same cash ISA or Stocks & Shares ISA. You can subscribe to both a cash and Stocks & Shares ISA in the same tax year and these can be held with different providers/managers.

You don't need to open a new ISA each tax year you can simply just continue adding to your current ISA if you so choose.

jennifernil

ahxcjb wrote: »

Hi, so just to confirm, as I am in a similar position. I currently have a Barclays ISA which I opened in February 2010. This paid a bonus for the first 12 months. Now the bonus period is at an end. I have paid in my maximum allowance for this tax year. Can I open another ISA with a new provider next week and then TRANSFER my ISA across (making sure I don't contribute an opening £1 to the account)? I would then start funding it with new payments from April 6, 2011.

Many thanks!

Yes, you could open for example the Halifax ISA Direct 4 (3%) and transfer to it. It runs for 12 months, so you could add to it after April 6th.

ahxcjb

Thanks all for the clarification!

Mikeyorks

britishboy wrote: »

Could I open a S&S ISA before April this year, with up to £10,200 worth of shares, then after 6th April open another, with up to £10,200 of shares so I had 2 ISA's I can use to trade with?

You can, but it's a bit of a pointless exercise unless you specifically want the ISAs with 2 different providers? As S&S ISAs don't work on specific (interest) rates - but from the Funds / Shares you put in them - most people simply add money into the existing ISA.

longwalks1

cheers Mike, and in years to come when hopefully its worth 10's of thousands of pounds, I can takethe whole lot out, in one go, and pay not a penny to the tax man?