ISA Question

piggybank2019

Hi, I opened an ISA in January 2019, It's my understanding that you cannot open more than one ISA in each tax year.

With that in mind, am I able to open another ISA in the new tax year in April 2019? or do I need to wait until April 2020 to open a new ISA?

Please, can someone clarify this thanks!

eskbanker

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

So, if you've already filled your ISA with the £20K annual allowance, then you need to wait until 6 April before you can pay any more into any ISA, although you may not need to open another one if your existing one accepts further contributions, as most do, except for fixed term cash ISAs....

piggybank2019

Hi Eskbanker,

Thank you for your response greatly appreciated!

Do you mean 6th April 2019? I've used my annual allowance and I've a fixed term ISA does that change anything?

soulsaver

piggybank2019 wrote: »

Hi Eskbanker,

Thank you for your response greatly appreciated!

Do you mean 6th April 2019? I've used my annual allowance and I've a fixed term ISA does that change anything?

End of this 2018/19 TAX YEAR is 5th April; start of the next TAX YEAR 2019/20 is 6th April

Robster88

piggybank2019 wrote: »

Hi Eskbanker,

Thank you for your response greatly appreciated!

Do you mean 6th April 2019? I've used my annual allowance and I've a fixed term ISA does that change anything?

If you've used your annual ISA allowance for this financial year you can't put more money into an ISA until the next financial year.

xylophone

The ISA subscription period runs from 6 April to 5 April in the following year.

It appears that you have subscribed £20,000 to your tax year 2018/19 ISA.

You can contribute up to £20,000 in the tax year 19/20.

https://www.gov.uk/individual-savings-accounts

AnotherJoe

piggybank2019 wrote: »

Hi, I opened an ISA in January 2019, It's my understanding that you cannot open more than one ISA in each tax year.

With that in mind, am I able to open another ISA in the new tax year in April 2019? Yes. 6th April 2019 eg just afew weeks time. or do I need to wait until April 2020 to open a new ISA? No, because that will be the tax year after the forthcoming one.

Please, can someone clarify this thanks!

Note also that you can just add to your existing ISA when the time comes, no need to use a new provider or hold two ISAs with one provider. Unless it's a savinsg ISA with specific rules and so they keep the amounts separate on that account. But for example I've had an ISA for many years with one company, every tax year I add to it. I don't have say 20 separate ISAs.

eskbanker

AnotherJoe wrote: »

Note also that you can just add to your existing ISA when the time comes, no need to use a new provider or hold two ISAs with one provider. Unless it's a savinsg ISA with specific rules and so they keep the amounts separate on that account. But for example I've had an ISA for many years with one company, every tax year I add to it. I don't have say 20 separate ISAs.

OP opened a fixed term ISA last month, so it's highly unlikely that it'll be open to further contributions in April, as such products almost invariably involve a short initial window within which all contributions must be made....

AnotherJoe

eskbanker wrote: »

OP opened a fixed term ISA last month, so it's highly unlikely that it'll be open to further contributions in April, as such products almost invariably involve a short initial window within which all contributions must be made....

Ah I missed that thanks.
OP why are you saving cash in ISAs? Unless you have very large amounts in cash and are a high rate tax payer you are usually much better off using a higher rate non-ISA account and paying the tax.