Basic question on multiple ISA's (S&S)

wizbongre

Hi All,

Sorry, after much searching and reading I can't seem to find a clear and definitive answer to what I know is a very simple question...

I already have cash ISA's and an S&S ISA from previous years. Currently not putting anything into the cash ISA but drip-feeding monthly payments into the S&S. I'm not using my full yearly allowance with this so would like to open 1 or more other S&S ISA's and split my investment. For the sake of simplicity, I want to end up with something like:

• S&S ISA Product 1 - £100/month
• S&S ISA Product 2 - £100/month
• S&S ISA Product 3 - £100/month

I've not opened any new ISAs in the current tax year but will be doing so shortly. Am I able to open 2 new S&S ISA's this tax year, to create "Product 2" and "Product 3" accounts or can I only open 1 ISA in any given year?

My thinking is that if I am not investing more than my allowance when the 3 monthly deposits are totalled up, it should be fine but I honestly can't find a clear answer to this.

Thanks all in advance.

innovate

In the same financial year, you can only put new money into one S&S and one cash ISA.

As you can hold any number of investments in a self-select S&S ISA, there is no need for multiple S&S ISAs.

If you have already made contributions into your S&S ISA since April 6 2014, and you are unable to add the investments you like to add, your only possible option could be an ISA transfer. Though, depending on the terms of your existing ISA, this may not be possible, and it may also be very costly.

jimjames

As soon as you pay money in that will count as opening an account for that year so won't then be able to open another.

wizbongre

Hi Both,

Thanks for your replies. I currently pay £x/month into Product 1 and have done for a number of years. Am I right in saying if I wanted to open Product 2 (another straight forward S&S ISA) I would have to stop paying into Product 1, even if the combination of payments is below my overall allowance? I've already paid into Product 1 this year so think that means I've used up my S&S ISA for the year and will have to trasnfer?

I think basically for me to get the combination of investments I want a self-select S&S ISA looks to be the way to go, as innovate has already suggested.

Looks like I'm off to research iWeb and the like...

jimjames

Yes.

If you have already paid money into an ISA this year you cannot open another.

You would have to transfer the current ISA to the new provider to be able to invest new money with them. Under the current rules you have to transfer the whole of this year's investment, you cannot do a partial transfer for the current year's money.

You could just wait till next April and start a new one then with the investments you want. If it is small amounts you are putting in each month there may not be much point dividing it even smaller between more funds/shares.

wizbongre

Thanks again.

That's pretty much what I've now decided to do. It isn't a big enough investment to worry too much about changing it right now.

vectistim

Are you making the distinction between product and platform?

eg: If Product 1 is the Wizzo Butter Managed Fund
Product 2 is the Throatwobbler Mangrove China Growth Fund
and
Product 3 is the Crimson Permanent Assurance Special Situations Fund

Your current ISA provider may allow you to invest in all three funds, without needing to transfer or start a new ISA, or if it doesn't offer, say Product 3, it might offer a similar Product,
Product 4 the Baron Munchausen Adventures Fund