Stocks & Shares ISA old and new

Think I've just made a mistake. I've just read another thread where it looks like someone has done the same thing although they had 3 ISA's which has made me realise I may have made a mistake.

I opened a S&S ISA in May this year and made a deposit and bought some shares.
Today I logged into a previous S&S ISA setup last year to see how its doing and got a bit excited to see some funds going up so wanted to invest some more into them and deposited more money into that ISA also and invested. As soon as I did I thought is this allowed??

I only have 2 S&S ISA one from a previous year and this one setup this year, I have no cash ISA's, have I made an error, can you only pay into 1 S&S ISA and no other even if its an old one and nowhere near the yearly allowance deposited across both?

What happens if it is wrong given now I've paid into the other S&S ISA. I deposited and invested 4k into it.

Am in right in the fact that if I have a S&S ISA and a Cash ISA I can pay into both of those in a tax year and thats allowed?
But if for example I had old S&S Isa's and Cash Isa's, does it mean I can pay into only one of the cash ISA's and also only one of the S&S Isa and only just those same 2 in that year, none of the others?








Replies

  • dunstonhdunstonh Forumite
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     As soon as I did I thought is this allowed??

    Its not.

    You can only contribute to one ISA provider of that type per tax year. 

    Am in right in the fact that if I have a S&S ISA and a Cash ISA I can pay into both of those in a tax year and thats allowed?

    Yes.  The overall limit applies but you would be using one of each type in that scenario. So, that is ok.

    But if for example I had old S&S Isa's and Cash Isa's, does it mean I can pay into only one of the cash ISA's and also only one of the S&S Isa and only just those same 2 in that year, none of the others?

    Age does not matter.  Its the contribution that matters.   

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • curtis122curtis122 Forumite
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    From having a look on the internet it seems if the Tax man contacts you, you could end up having a 'Repair' done on the ISA which should protect the ISA and its Tax free wrapper on the rest of the money in there.

    Has anyone had a 'repair' or know exactly what happens?  I am assuming that they will just look at any 'Gains' made on that 4k paid in error and if there are any they will get taxed and the rest stays untaxed as normal? What would happen to the 4k after that would it then become part of the ISA total going forward and be tax free along with the rest of what's in there?
  • masonicmasonic Forumite
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    curtis122 said:
    Has anyone had a 'repair' or know exactly what happens?  I am assuming that they will just look at any 'Gains' made on that 4k paid in error and if there are any they will get taxed and the rest stays untaxed as normal? What would happen to the 4k after that would it then become part of the ISA total going forward and be tax free along with the rest of what's in there?
    The second S&S ISA you paid money into would not be eligible for repair, so it would be voided and the assets would be removed from the ISA and any income or capital gains from those assets would be taxable as if they were never held in the ISA. The assets from other tax years would be unaffected. HMRC might decide to be lenient, especially if the overall ISA allowance was not breached.
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