Applying for two stocks and shares ISAs in same tax year

JerrySt

Hi, I am hoping someone can help please. I currently have two ISA accounts. A cash e-ISA with Virgin and a Lifetime ISA with Skipton. This tax year I have maxed both out (£16k Virgin, £4k Skipton) and am wanting to move the Virgin ISA to a stocks and shares ISA and the Skipton LISA to a stocks and shares option (AJ Bell).

I'm unsure whether I can do this. I know I can transfer one, but can I transfer both? Is this within the rules?

Thanks in advance. 

eskbanker

Yes, you can transfer both, because a S&S LISA is a subset of LISAs rather than being a S&S ISA as such, so you can have current year money in both.

badger09

JerrySt said:

Hi, I am hoping someone can help please. I currently have two ISA accounts. A cash e-ISA with Virgin and a Lifetime ISA with Skipton. This tax year I have maxed both out (£16k Virgin, £4k Skipton) and am wanting to move the Virgin ISA to a stocks and shares ISA and the Skipton LISA to a stocks and shares option (AJ Bell).

I'm unsure whether I can do this. I know I can transfer one, but can I transfer both? Is this within the rules?

Thanks in advance. 

Do you mean transfer the Virgin Cash ISA to an S&S ISA with provider X, and the Skipton LISA to an S&S LISA with AJ Bell?
Or, transfer both your Virgin Cash ISA and your Skipton LISA to a single S&S ISA with AJ Bell? 
 You can do either of the above, using the new providers' transfer processes.

What you can't do is move the Virgin Cash ISA to an S&S ISA with Provider X, and the Skipton LISA to an S&S ISA with AJ Bell (but I'm probably over complicating now )

JerrySt

Many thanks eskbanker and badger09 that's clear. 

And just to clarify I would like to move the Virgin cash ISA to the Vanguard S&S ISA. And separately to that I'll move the Skipton LISA to the S&S investment ISA with AJ Bell. So there would be no two into one. I'll be keeping them separate. 

eskbanker

JerrySt said:

And just to clarify I would like to move the Virgin cash ISA to the Vanguard S&S ISA. And separately to that I'll move the Skipton LISA to the S&S investment ISA with AJ Bell. So there would be no two into one. I'll be keeping them separate. 

As badger09 pointed out, you can't do that, but you can transfer the Skipton LISA to an AJ Bell S&S Lifetime ISA....

JerrySt

Yes sorry, I forgot to add the critical 'Lifetime' in front of the AJ Bell ISA! Thanks for the clarity. 

ColdIron

I'm too old for a LISA so I've never though about it, but out of curiosity ... If you can contribute to a LISA, receive the top up and transfer to a S&S ISA why doesn't everybody do this for the free cash (except us oldies)? I must be missing something

Apols for the hijack

eskbanker

ColdIron said:

I'm too old for a LISA so I've never though about it, but out of curiosity ... If you can contribute to a LISA, receive the top up and transfer to a S&S ISA why doesn't everybody do this for the free cash (except us oldies)? I must be missing something

Yes, you're missing the fact that doing so (when younger than 60 and not buying a first-time property) is treated as a chargeable withdrawal and so incurs a 25% penalty, which more than wipes out the free cash.  Even the current temporary coronavirus concessionary rate of 20% penalty would leave you no further ahead....

[Deleted User]

eskbanker said:

JerrySt said:

And just to clarify I would like to move the Virgin cash ISA to the Vanguard S&S ISA. And separately to that I'll move the Skipton LISA to the S&S investment ISA with AJ Bell. So there would be no two into one. I'll be keeping them separate. 

As badger09 pointed out, you can't do that, but you can transfer the Skipton LISA to an AJ Bell S&S Lifetime ISA....

Out of interest, why is this not possible?

eskbanker

Isaisa1975 said:

eskbanker said:

JerrySt said:

And just to clarify I would like to move the Virgin cash ISA to the Vanguard S&S ISA. And separately to that I'll move the Skipton LISA to the S&S investment ISA with AJ Bell. So there would be no two into one. I'll be keeping them separate. 

As badger09 pointed out, you can't do that, but you can transfer the Skipton LISA to an AJ Bell S&S Lifetime ISA....

Out of interest, why is this not possible?

Because that would have resulted in OP's current tax year contributions being in two different S&S ISAs, which isn't allowed.

JerrySt

@eskbanker Thank you for your previous responses. I have carried out moving my ISA's this tax year as mentioned above; Skipton LISA (£4k invested this tax year) to AJ Bell S&S LISA, Virgin Money Cash e-ISA (£16k invested this tax year) to Vanguard S&S ISA.

I am fully invested in terms of the £20k maximum ISA investment 20/21 tax year, but I am wanting to know whether this tax year I could split the Vanguard S&S ISA total funds 50/50 with another S&S ISA provider (Trading 212). Is this possible? It sounds as though a split of this nature this year is not possible. If it's not possible this tax year, is it possible in the 21/22 tax year?

Many thanks in advance.