Added “new money” into two separate S&S ISA opened in different Tax years

Dis.orientated

Hello, hoping someone would be able to help. As stated in the title, I have 2 S&S ISAs opened in different tax years, but mistakenly paid into both this year. 

From reading previous threads, it seems like I need to wait for HMRC to contact me at the end of the tax year, and one of them might be closed / refunded. 

What I need help with is what I should do with the holdings I have in the “second” ISA. Assuming the funds in here will eventually need to be refunded / transferred, should I do this manually now to avoid (fingers crossed) potentially needing to pay tax if the value of the holdings I have increase? 

Steve182

I don't know the answer but I would suggest you contact HMRC and ask them.

If that value (obviously the error cannot be more than £20K) had been held in a S/S dealing account, it's actually unlikely you will pay tax on those investments in 12 months unless you also have other investments outside tax shelters.

The annual CGT tax allowance is around £12,300 as I recall, and dividend tax free allowance is £2,000.00 

NottinghamKnight

Dis.orientated said:

Hello, hoping someone would be able to help. As stated in the title, I have 2 S&S ISAs opened in different tax years, but mistakenly paid into both this year. 

From reading previous threads, it seems like I need to wait for HMRC to contact me at the end of the tax year, and one of them might be closed / refunded. 

What I need help with is what I should do with the holdings I have in the “second” ISA. Assuming the funds in here will eventually need to be refunded / transferred, should I do this manually now to avoid (fingers crossed) potentially needing to pay tax if the value of the holdings I have increase? 

No, contact the provider of the additional isa and let them know, they may be able to simply transfer into a general investment account and resolve more promptly, I wouldn't wait if I were you.

Dis.orientated

Contacted HMRC and was advised to contact the ISA Manager for more details... and was also told that I could add funds into multiple S&S ISAs as long as it's under the £20,000 limit........?! 

Might have to correct this myself, although unfortunately it seems I need to sell all my holdings and transfer to a general investment account as cash.

Steve182

I'm no expert, but this is my opinion-.

It sounds like the person you spoke to at HMRC didn't  really understand your situation or reason for calling?

 My suggestion would be to transfer out the required amount  from one of the ISAs to a S/S dealing account (to get within £20K annual limit)  then write to HMRC to explain what you have done and what money, if any, you made or lost. Obviously if you made £££ in one ISA  and lost £££ in the other then transfer money out of the losing ISA to show a loss and avoid any possible tax burden.