Can I open 2 ISAs in the same tax year?

lolabunny60

Does anyone know if I am allowed to open 2 new ISAs in the same tax year? One to transfer an existing ISA and one for new money. I have been given conflicting advice.

Ilya_Ilyich

Yes, you are allowed to do this. Assuming you're talking about Cash ISAs, you can only add new money to one ISA per year but you can open as many as you want if they'll only be funding by transferring in existing ISAs from previous years.

Alter_ego

As post 2 ^^^

jimjames

lolabunny60 wrote: »

Does anyone know if I am allowed to open 2 new ISAs in the same tax year? One to transfer an existing ISA and one for new money. I have been given conflicting advice.

You are actually only opening one new ISA.

The other is an existing ISA which is treated differently as it is purely a transfer of the existing ISA which can be done at any time - even twice in one year if you so wished.

Gordon_the_Moron

You can only SUBSCRIBE to one per year (i.e. pay money into which isn't already in an ISA) you can open as many as ISAs as you want but you have to either leave them empty or transfer money from previous years into them. You can also transfer the current year's allowance from one ISA to another if you wish (previous year's allowances can be split up, the current year's allowance has to be all in one place as you transfer the remaining allowance as well as the money with it)

altocumulus

I have a similar problem. Two existing Cash ISAs (mine and my wife's) were kept with the same provider, as a fixed rate one year option, in April 2010 - all paperwork duly signed and set up. At the time we couldn't find the full 5100 to add (only a lump sum allowable).

Yesterday we went into the bank to add the 5100 to each as our allowance for the 2010-11 year and were told that we couldn't add, and had to open a new ISA ....

Confused we be and the bank assistants didn't/couldn't explain the whys and wherefores, only tried to sell us a stocks&shares ....

I understood only one ISA is allowed each year, but not why we were not allowed to add to the existing one.

alastair_h

altocumulus wrote: »

I have a similar problem. Two existing Cash ISAs (mine and my wife's) were kept with the same provider, as a fixed rate one year option, in April 2010 - all paperwork duly signed and set up. At the time we couldn't find the full 5100 to add (only a lump sum allowable).

Yesterday we went into the bank to add the 5100 to each as our allowance for the 2010-11 year and were told that we couldn't add, and had to open a new ISA ....

When exactly did you open the Fixed Rate ISA, if it was from 6th April that would be 2010/11's financial years contribution used. If up to 5th April it would be 2009/10's?

Alter_ego

alastair_h wrote: »

When exactly did you open the Fixed Rate ISA, if it was from 6th April that would be 2010/11's financial years contribution used. If up to 5th April it would be 2009/10's?

That's not relevant if it's a fixed rate. Most can only be added to if the issue is still open.

altocumulus

alastair_h wrote: »

When exactly did you open the Fixed Rate ISA, if it was from 6th April that would be 2010/11's financial years contribution used. If up to 5th April it would be 2009/10's?

It was the 2010-2011 year. The provider sent us documentation prior to the start of the financial period, so it was from 6 April 2010.

They responded recently by stating that they had withdrawn the product some time afterwards - without warning us.

That being so, but we had still signed up before withdrawal took place .....

Alter_ego

=altocumulus
That being so, but we had still signed up before withdrawal took place .....

Yes but see post 8, it's all in the t&c's
If they warned you of impending closure they would also warn everyone in the world, which could make the issue oversubscribed

alastair_h

altocumulus wrote: »

It was the 2010-2011 year. The provider sent us documentation prior to the start of the financial period, so it was from 6 April 2010.

They responded recently by stating that they had withdrawn the product some time afterwards - without warning us.

That being so, but we had still signed up before withdrawal took place .....

That being so you should still earn interest at the rate advertised for 1 year from opening. As you say both are fixed rate, nearly all Fixed Rate ISA's do not allow you to add funds (i.e. top them up to the full £5,100 each) after either initial deposit or the issue closing period. If this is the scenario you will only to be able to add ISA funds for 2011/12 from 6th April 2011 (£5,340 each).