Do I need a Stocks and Shares ISA to invest or just to withdraw from my investments?

Brunswick51

Good afternoon,
I currently invest £50/month into a fund through my bank and at the time I set it up as a stocks and shares ISA. My understanding is that I can only have one of these types of ISAs at any one time. I would now like to invest in a company through Hargreaves landsdown, but would like to keep my £50/month investment going through my bank. I don’t intend to withdraw any of the value of the bank investment (just want to let it grow year on year). Am I able to set up my HL account as a Stocks and Shares ISA (subject to the terms... not having set up another isa in this tax year) and continue paying into my bank fund? Or would I need to close down this investment in order to set up with HL?

I don’t fully understand the tax implications. Therefore want to know how best to tackle the ISA, i.e. do I only pay tax on it if I decide to withdraw it or is it paid on any growth within the investment as a kind of PAYE style?

Thank you for your help!

Thrugelmir

You can invest in companies without having the investment itself held in an ISA wrapper.  Unless you are investing large sums unlikely that you'll be disadvantaged by doing so. 

Albermarle

If you invest outside a S&S ISA , then you are potentially subject to capital gains and dividend tax , although like said above you need to be quite a large investor for this to come into play. 
Anyway you can open one new S&S ISA every new tax year if you want .

Eco_Miser

You can have multiple S&S ISAs simultaneously . However, you can only subscribe to one in any financial year.  So you can't open an ISA with H-L until 6th April, since you have paid into your existing ISA this year, and you must stop the current subscriptions before 6th April, or you will have paid into your current ISA in the next financial year, and be blocked from opening a new ISA until April 2021.
You could transfer your current ISA (at least the current year's subscription) to H-L to get round that.