IF ISA Rules - looking for clarity

Hi all!

I'm a little confused over the rules regarding IF ISAs, specifically when opening a new one in a new tax year.

I have read the rules and understand I can open one IF ISA per tax year, and that once the tax year rolls over I can open one with a new platform.

So, let's say I invest £20,000 in tax year 2018/19 in Platform A.
Now that we're in tax year 2019/2020, I'd like to open an IF ISA with Platform B and start investing up to my limit for 2019/20 in Platform B.

But, because Platform A account is still open, I could still add funds to it. Is this allowed?
- If so I assume the combined total invested in Platform A and Platform B should not exceed the year's limit.
- If it's not allowed, then I'd still like to invest in Platform A (outside of the IF ISA), but what happens if I accidentally add funds to the Platform A IF ISA?

I don't want to close the Platform A IF ISA or transfer funds, as I'd like to diversify between the platforms. How does this work?

Thanks in advance!


  • masonicmasonic Forumite
    19.1K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You cannot add new money to more than one IF ISA in a given tax year. If you do, the the second IF ISA you paid money into will be invalid and HMRC will decide how to resolve the matter - this could involve removing the money subscribed and interest generated on it, and taxing the interest.

    The easiest way to diversify is by opening a cash ISA towards the end of the tax year and then transfer it to your chosen IF ISA(s) in the next tax year. Previous year money can be transferred and split up as you see fit.
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