Stocks and Shares ISA with two providers

st0ne5ish

Hi,
I have £14k invested in a Stocks & Shares ISA with one provider, I wish to invest the remaining 6k of my allowance with a different provider also in a Stocks & Shares ISA, the reason being the particular types of share I want to buy is not available to buy from the first provider. Is this allowed in the same tax year?
Thanks.

sean56

Yes it is 

st0ne5ish

sean56 said:

Yes it is 

I've just been reading a bit more in the Internet and now I'm confused the Govt website and some others seem to indicate I'm not allowed to invest in two of the same type e.g. Stocks & Shares ISA in the same year?

Alexland

sean56 said:

Yes it is 

Wrong - you cannot contribute new money into two S&S ISAs in the same tax year.

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."

st0ne5ish

Alexland said:

sean56 said:

Yes it is 

Wrong - you cannot contribute new money into two S&S ISAs in the same tax year.

Thanks, I have opened the 2nd stocks and shares ISA already but not added any money to it at all, am I in trouble or can I just close the account?

Alexland

st0ne5ish said:

Thanks, I have opened the 2nd stocks and shares ISA already but not added any money to it at all, am I in trouble or can I just close the account?

It's fine just close it - you can open new accounts eg if you wanted to transfer an existing ISA account to a new provider then the old provider would tell the new provider how much allowance you have left for the tax year.

st0ne5ish

Alexland said:

st0ne5ish said:

Thanks, I have opened the 2nd stocks and shares ISA already but not added any money to it at all, am I in trouble or can I just close the account?

It's fine just close it - you can open new accounts eg if you wanted to transfer an existing ISA account to a new provider then the old provider would tell the new provider how much allowance you have left for the tax year.

OK makes sense, thanks for the help 

grumiofoundation

st0ne5ish said:

sean56 said:

Yes it is 

I've just been reading a bit more in the Internet and now I'm confused the Govt website and some others seem to indicate I'm not allowed to invest in two of the same type e.g. Stocks & Shares ISA in the same year?

To maybe confuse matters slightly you can 'invest' (i.e. buy and sell shares/funds etc within the account) with 2 different S&S ISAs providers in the same year as long as you only contribute new money to one. The limitations (as explained by Alexland above) are on contributing. 

If for example you had a cash ISA contributed to in 2019/2020 tax year you could transfer this to S&S ISA B - this does not count as contributing. 

If you want to invest £6000 (or less) in the investment you do not have on your current Stocks and Shares ISA then you could just do via a non-ISA wrapped investment account.
Next tax year you could then move these into an ISA wrapped account - Capital gains tax would be apply in this case but since you have a £12300 allowance unless you have made gains elsewhere unlikely you will need to pay - and if you do have made 200% in 3 months so good times!

st0ne5ish said:

Hi,
I have £14k invested in a Stocks & Shares ISA with one provider, I wish to invest the remaining 6k of my allowance with a different provider also in a Stocks & Shares ISA, the reason being the particular types of share I want to buy is not available to buy from the first provider. Is this allowed in the same tax year?
Thanks.

Assumed the 14k was contributed this tax year.

dunstonh

You can have as many different S&S ISAs as you like.  However, you can only contribute to one in a tax year.   So, if the £14k was contributed this tax year then you are stuck with that one for the remainder of this tax year unless you transfer it).   If the £14k was contributed in a previous tax year then you are free to have a different one this tax year.