Opening two S&S ISAs in same tax year

Umiamz

I have a Vanguard S&S ISA which has been empty for a few months and never had more than £10,000 in it. I asked Vanguard to close it and this has been actioned. I’ve now opened an HSBC S&S ISA with £1000 but am worried that I might have broken the rules.

Can anybody confirm whether opening more than one or contributing to more than one is what’s forbidden?

eskbanker

Umiamz said:

Can anybody confirm whether opening more than one or contributing to more than one is what’s forbidden?

Yes, HMRC can, at https://www.gov.uk/individual-savings-accounts

There are 4 types of ISA:

• cash ISAs
• stocks and shares ISAs
• innovative finance ISAs
• Lifetime ISAs

You can put money into one of each kind of ISA each tax year.

eskbanker

Umiamz said:

Ok, so even though I’ve not paid into both at the same time and have only held one at a time, it’s still against the rules?
What do you suggest I do - call them, or see what happens?

As above, the rules relate to activities over the course of a tax year rather than 'at the same time', but even if you paid into your Vanguard account this tax year (which didn't seem likely based on your OP), you are still able to withdraw from a flexible ISA such as that and pay into another one, so you're not in breach.

Similar thread here: https://forums.moneysavingexpert.com/discussion/6220358/i-have-paid-into-two-s-s-isas-this-year-what-kind-of-penalties-may-i-face

Edit: looks like the post I was replying to was deleted!

Umiamz

Apologies - I accidentally deleted it while trying to edit it. Not having a good day today 

The Vanguard ISA was a flexible ISA opened in March and I did pay into it this tax year but withdrew everything in July. So does that mean I can safely pay into the new HSBC S&S ISA? The threads referenced seem to suggest this is OK but I’m not sure why...

eskbanker

Umiamz said:

Apologies - I accidentally deleted it while trying to edit it. Not having a good day today 

The Vanguard ISA was a flexible ISA opened in March and I did pay into it this tax year but withdrew everything in July. So does that mean I can safely pay into the new HSBC S&S ISA? The threads referenced seem to suggest this is OK but I’m not sure why...

It's the ISA flexibility provisions, explained at https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#f-isa

Umiamz

eskbanker said:

Umiamz said:

Apologies - I accidentally deleted it while trying to edit it. Not having a good day today 

The Vanguard ISA was a flexible ISA opened in March and I did pay into it this tax year but withdrew everything in July. So does that mean I can safely pay into the new HSBC S&S ISA? The threads referenced seem to suggest this is OK but I’m not sure why...

It's the ISA flexibility provisions, explained at https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#f-isa

Thanks, that’s interesting. Looks like I’m ok to proceed for now.

busy_dad

Apologies to jump on to the thread with my own question as it is very similar. Can you open a second S&S ISA / Junior S&S ISA in the same tax year (i.e the first ISA was also opened this tax year) in order to perform a transfer from the first to the second? I'm looking at both S&S ISA and Junior ISAs in this case.

Many thanks

eskbanker

busy_dad said:

Apologies to jump on to the thread with my own question as it is very similar. Can you open a second S&S ISA / Junior S&S ISA in the same tax year (i.e the first ISA was also opened this tax year) in order to perform a transfer from the first to the second? I'm looking at both S&S ISA and Junior ISAs in this case.

Yes, as long as all the current year money is transferred from the first to the second.