Opened 2 new S&S In same years and part transferred previous years cash ISA both-lack of knowledge
Thanks for the great forum. Apologise for adding as new post. I couldn’t find a similar scenario related to multiple Shares ISA accounts and hence posting this as new post.
I just found out one cannot have 2 ISA in same tax year. I had opened Hargreaves S & S ISA in middle of April 2020 to buy INDEX FUNDS & added new cash plus every month automatic funds investment into funds and towards end of April, I found trading212 offering commission free S&S ISA accounts to buy shares (buying shares in HL costing a lot on fees), I added £2000 to this account. Probably I did not read any terms while opening accounts using mobile phone apps.
I had cash ISA account over the years accumulating in a bank account with 0.2% interest rate. So I partly transferred cash ISA £6000 to Trading 212 for the plan to buy shares and partly another £6000 to Hargreaves to plan to invest in index funds.
Total this year allowance used so far in both Trading 212 and Hargreaves is £3800 and far away from the annual allowance but it is in 2 different accounts due to my lack of knowledge I opened 1 S&S for funds and other S&S for shares.
Total allowance this year : £3800
1st account this year : In Hargreaves: funds over the years plus this year allowance used little bit.
2nd account this year: In trading 212: with new investment and old cash ISA funds into it and invested in few shares and on -45% loss portfolio. I kept 50% as cash and stopped investing on both now after reading few posts about multiple S&S ISA is same tax year on MSE forum.
I called HMRC helpline to discuss this and the call centre staff heard my scenario and he confirmed he don’t have answer in his system about next steps and he asked me to leave as it is and HMRC experts will write to me in future about this.
I am really worried about what will happen to my accounts as next step.
1. Will they consider my 2nd account ISA as normal trade account and ask trading212 to sell my shares and close it with 45% loss? Or they will transfer all to normal trade account?
2. Is the part transfers from previous years cash ISA allowed to have 2 different S&S shares account like me?
3. Would they consider major money contribution came from previous ISA accounts for both HL and Trading212 accounts and they will transfer current years £2000 invested in shares on my 2nd ISA account out as not allowed and leave the previous years £6,000 as it is in my 2nd ISA in trading212s?
4. Next tax year what can I do? Can I keep both accounts with old ISA money transferred into and buy shares without contributing new cash into it?
When will HMRC write me about next steps?
I appreciate any help and guidelines about what will happen from now. I wish i have read MSE forum before opening any accounts.