Multiple stocks and shares ISA

JMW

I have a stocks and shares ISA via a flexible mortgage plan scheme with L&G. This product incorporates some life, terminal illness and critical illness cover as well as a payment into a stocks and shares ISA. It's not performed particularly well, but the life and illness cover has some value to me and I'd like to keep that going. I also hold a cash ISA that has a fair amount in it.

I would like to invest more into a stocks and shares ISA but not the L&G one. As far as I understand the rules, I could open another stocks and shares ISA with another provider and transfer an amount from my cash ISA into that other provider's stocks and shares ISA whilst also continuing to pay into the L&G ISA, so long as I'm not paying any 'new' money into the new stocks and shares ISA. I am, in effect, only paying into one stocks and shares ISA - the L&G one.

I would also be able to continue to pay into a cash ISA if I wished - subject to ISA limits etc.

Have I understood the rules correctly?

eskbanker

You could open the second S&S ISA and transfer into it from a cash ISA, but only if it's not current year money making that journey, as that would fall foul of the rule that all current year money must be kept together for any given ISA type.

JMW

OK - I thought that might be the case - thanks!

I could still pay into the cash ISA but would have to wait until the next tax year to transfer that new amount over to the second S&S ISA. New amounts into the second S&S ISA would lag by a year if you see what I mean.