Can I open 2 cash ISAs?

Simsybloke

Folks,

I hope the thread title attracts someone knowledgeable... I couldn't even get the answer from the HMRC using the number given as the ISA experts?...

Anyway, the situation is as follows, and I'm just after a yes or no as to whether or not it's allowed by the tax rules. (I realise that the individual banks will also have rules that may restrict it, but that's something else)...

Son has approx £11k in an ISA... He also has approx £11k in other various savings pots, (not ISA)...

What he is thinking of doing having (checked rates), is opening a Cash ISA and transferring ALL of his existing ISA into it, WITHOUT paying anything else into it. He then want to open another Cash ISA and pay in the £11k that he currently has spread around.

Ignoring whether or not this is the best thing to do, can someone knowledgeable advise whether or not this is allowed?

I'm pretty sure it's not permisable to pay into 2 separate Cash ISAs
in the same tax year... but I think it's permissable to actually open 2. If I'm correct, does transferring in count as "paying in", in this specific context?

many thanks in advance.

Regards,

Simsybloke

Lokolo

Has he paid into the current ISA this year (i.e. from April 6th 2014)? If so, how much?

Linton

Transferring from another ISA set up in a previous tax year does not count as paying-in. So son can do what he wants as long as he hasnt yet paid money into any ISA this tax year. Note that to transfer you have got to ask the accepting ISA to transfer-in. Dont simply withdraw the money from the old ISA - it will lose its ISA status.

Simsybloke

but, with respect, and definately no offense intended, I don't think that's relevant.

It might become, depending on the answer to my question, but at the moment it isn't.

Thanks,

Regards,

Matt

Simsybloke

Thank you for that...my first response crossed with Linton's answer.
So opening 2 Cash ISAs in one year is allowed?

Regards,

Matt

Lokolo

Simsybloke wrote: »

but, with respect, and definately no offense intended, I don't think that's relevant.

It might become, depending on the answer to my question, but at the moment it isn't.

Thanks,

Regards,

Matt

Well yes it is bloody relevant because those the rules. Answer my question and you might get an answer.

You can open up 2 ISAs, you cannot put money into both. If your existing ISA has had money in it from this year already you cannot open another one and put money into that one which is what you stated you wanted to do.

Which is why I asked the question in the first place.

CLAPTON

Simsybloke wrote: »

Thank you for that...my first response crossed with Linton's answer.
So opening 2 Cash ISAs in one year is allowed?

Regards,

Matt

you can open any number of new cash ISAs in any one tax year but you can only contribute new money to one

vectistim

Simsybloke wrote: »

but, with respect, and definately no offense intended, I don't think that's relevant.

It might become, depending on the answer to my question, but at the moment it isn't.

It is relevant.

Transfers from previous tax years don't count.
New money may only be paid into one cash ISA per tax year.
eg: If he paid £6,000 of the £11,000 currently in ISAs in this current tax year then he could only pay in another £9,000 of new money and it would have to go to the same place the £6,000 is.

For the terminology you open 1 new cash ISA per year, and transfer any previous tax years to a different provider.

bryanb

You can only deposit new money into one cash ISA in any one tax year- simples

Simsybloke

Thank you all for your answers.
I am now clear on what's allowed...

2 Cash ISAs may be opened in the same tax year.
A Transfer in doesn't count as paying in.

That was all I was seeking confirmation, (or otherwise), of.

The other considerations, whether, and if so how much, has been paid in this year, can be considered separately.

My apologies for any upset caused. I deliberately, specifically, didn't say what had been paid in this year because it was something I failed to ask my son when he sought my advice, and so I don't, at the moment know.

Perhaps my original post was too long and unclear as to what I was after.

Thanks all.

Regards,

Matt

macrae2100

Simsybloke wrote: »

The other considerations, whether, and if so how much, has been paid in this year, can be considered separately.

Not really, if anything at all has been paid into his current ISA this tax year there's no point in opening another...

Most ISA's will require you to pay something in when opening it.