Paying into 2 cash ISA same year, opened in separate years.

jefflemon

I'm getting conflicting information from Nationwide and I've called HMRC but they were unable to answer the question.

I opened a cash ISA in 15/16. I opened another cash ISA in 16/17.

During 16/17 I paid in to both ISA but kept below the limit of £15,240.

Is this allowed? Please note that they were "subscribed to" in separate tax years.

xylophone

Do you mean that you paid into ISA 1 only before 6 April 2016 and into ISA 2 only after 6 April 2016?

Or that you have paid into both on or after 6 April 2016?

jefflemon

I've paid into both after 6th April 2016. Customer care line states this is ok on a number of occasions.

Asghar

jefflemon wrote: »

I'm getting conflicting information from Nationwide and I've called HMRC but they were unable to answer the question.

I opened a cash ISA in 15/16. I opened another cash ISA in 16/17.

During 16/17 I paid in to both ISA but kept below the limit of £15,240.

Is this allowed? Please note that they were "subscribed to" in separate tax years.

I'm sure that paying into two separate cash ISA's in the same financial is against the rules.

You can have many separate cash ISA's from previous years but only one can have money paid into each financial year.
If you paid into the April 15/16 this year then that would have been your active one for this year. Or you could have opened a new one this year and paid into that one only, not both.

You can save into two ISA's in the same year if one is a cash ISA and the other is a stocks and shares ISA with the maximum allowance split between the two.

When HMRC find out you may have to close one of them, I'm surprised they were unable to help.

jefflemon

I've just contacted Nationwide again and they have re-confirmed you can have as many cash ISAs with them as you like and pay in to them - even in the same tax year.

Seems strange but after a google search came across:

http://www.thisismoney.co.uk/money/saving/article-2589272/Hidden-danger-cost-15-000-Super-Isa-tax-break.html

Which states:

At Nationwide, you can open more than one type of cash Isa in a tax year as they are all held under one Isa umbrella.

Also on Nationwide's own site it states:

"You can pay into any of the ISA(s) you hold in each tax year, as long as you don't go over your allowance."

http://www.nationwide.co.uk/guides/looking-after-your-money/tax-free-savings

So i presume behind the scenes it's one cash ISA under some sort of umbrella.

jefflemon

Hmm I've just found an old post about it:

https://forums.moneysavingexpert.com/discussion/5019538

Ed-1

jefflemon wrote: »

I've just contacted Nationwide again and they have re-confirmed you can have as many cash ISAs with them as you like and pay in to them - even in the same tax year.

Seems strange but after a google search came across:

http://www.thisismoney.co.uk/money/saving/article-2589272/Hidden-danger-cost-15-000-Super-Isa-tax-break.html

Which states:

At Nationwide, you can open more than one type of cash Isa in a tax year as they are all held under one Isa umbrella.

Also on Nationwide's own site it states:

"You can pay into any of the ISA(s) you hold in each tax year, as long as you don't go over your allowance."

http://www.nationwide.co.uk/guides/looking-after-your-money/tax-free-savings

So i presume behind the scenes it's one cash ISA under some sort of umbrella.

Yes, Nationwide are what'should known informally as a 'split-ISA' provider. They treat all cash ISAS held with them as one cash ISA for HMRC reporting purposes.

tttony

it does mean that if you want to move to another provider the 2 will have to be merged into 1, if you wanted to keep them separate you will have to show you accidentally paid into the old one and get the money refunded

badger09

tttony wrote: »

it does mean that if you want to move to another provider the 2 will have to be merged into 1, if you wanted to keep them separate you will have to show you accidentally paid into the old one and get the money refunded

Though if OP waits 4 weeks he can have their contents transferred separately, merged into 1 then transferred, or transferred in any combination he chooses;)

Rich2808

Nationwide allow split ISAs so do RBS/Natwest and Aldermore. I am not aware of any others.

If they are not a split isa provider you can only invest new money in one cash isa/HTB isa a year – although you can obviously do transfers.

So as its Nationwide the OP is fine.