How many ISAs can I pay into each year?

psychic_teabag

I think the simplest statement of the rule is that "all the current year's subscriptions must stay together". That covers
only having one per year
if you transfer, must transfer all or none of the current year's subscriptions.
after the transfer, can continue paying into the destination one

( Well, okay, it doesn't cover the fact that you are allowed to withdraw your own money from the account, if you want to spend it ! And it does need to be supplemented if you transfer cash ISA to S&S ISA, since you can then start a new cash ISA.)

castle96

"You would not close the ISA. You would ask the new provider to transfer your existing ISA. You cannot contribute to a second (or subsequent ISA) in a single tax year as long as your existing one is still open. You can transfer your ISA though, in the current tax year, just as many times as you like, as long as you transfer the current FY's contributions in their entirety."

yes but... if you came to the end of one year with that provider, then cashed it, then invested with another provider (this would only be 1 x isa in the new year), you would be doing a NEW ISA and probably getting a better rate than 'transfer only' isa's. You would still have gained the interest tax free from the previous year's investment, and only be doing one isa in the 'new year'. So why not ? Seems perfectly possible......

innovate

castle96 wrote: »

yes but... if you came to the end of one year with that provider, then cashed it, then invested with another provider (this would only be 1 x isa in the new year), you would be doing a NEW ISA and probably getting a better rate than 'transfer only' isa's. You would still have gained the interest tax free from the previous year's investment, and only be doing one isa in the 'new year'. So why not ? Seems perfectly possible......

This is only a possibility for people who do not wish to max their ISA allowances each year. Anyone who wants to build up their ISA balance beyond the annual allowance will want to transfer their existing ISA(s) to better rates, even if these aren't the top rates for new accounts only.

There is no reason why you should not transfer ISAs from previous years on one ISA, but open another one for your new contributions