Funding 2 ISAs in same tax year

JohnnyJet

I have a s & s ISA that I use to buy funds, I would also like to move some shares into an ISA wrapper but I don't think that the fund manager I am with is that good value for holding shares. Can I open a new stocks and shares ISA in the same tax year to do this?

colsten

You cannot put new money into the same type of ISA in a single tax year.

You could in theory deposit new money into a cash ISA (as well as into your existing S&S ISA), then open a new S&S ISA and ask the provider of that ISA to transfer the cash ISA into the new S&S ISA.

A more important consideration should be whether holding individual shares is indeed a better choice than holding funds.

JohnnyJet

I have a small amount of shares that I receive good dividends on which are taxed, I have held these for over 10 years and have never thought about putting them in an ISA to save tax. I have funds with HL but don't think they are that competitive for storing shares, hence my thoughts about using a different provider.

In fact won't the new £5,000 tax free divided allowance cover this? Will I now be paid dividends tax free below £5,000?