Cancel S&S ISA to open another

SandyBottoms

Hey folks,
I have what must be a pretty easy question.

I have a s&s ISA that i opened last year really only to get a quidco offer payment. The return is tiny as not much goes in.

So i thought i'd just do the same again. Cancel the current one then go through quidco to get another offer payout again this year.

I am aware you can only have one S&S. But it seems you can only have one S&S in a tax year and can't have 'only one' by cancelling one and starting another.

Can anybody please confirm this is the case or not please?

**An important point to this is the ability to open a new S&S though Quidco, so transferring to another provider (if that's allowed) will only work if I can open a new S&S ISA before transfering funds from the existing one.

Thanks for any help

eskbanker

The rule is that you can only pay new money into one ISA of each type in any tax year, rather than only having one of each type.

So, if you've paid anything into the first one this tax year then you'll need to transfer that money, but the first step is to open the second one before transferring so that should still work OK.

If you haven't paid anything into the first one this tax year then you're free to do what you like!

SandyBottoms

Thanks for the reply.

Yeah I have paid dd into the existing one. Ok, that sounds promising. I can open a new one then transfer the existing one into it and hopefully all will be well

Alexland

Also worth asking your existing provider if there are any exit charges, market adjustments or cashback minimum terms on the old product.

SandyBottoms

thanks.

Min term i'm deffo covered, but yes i well look at potential exit charges.

Alexland

SandyBottoms wrote: »

Min term i'm deffo covered, but yes i well look at potential exit charges.

Look deeply and formally ask questions in writing if any of these ISAs are with friendly societies as they can be quite punitive on early account closures which can cause a significant proportion of your capital to be withheld.

Alex.

SandyBottoms

Thanks i appreciate it