TWO ISA's in one year by mistake

eskbanker

Dilbert_Investor said:

I did first read it as only the current year contribution in the second account would be effected not the previous years contributions in that same account.  So, in effect the ISA account would continue just minus the current year contribution.

But the second paragraph "so if the second bit loses its ISA status to become unwrapped" made me question myself and think it could actually mean all the contributions in that particular account including previous ones too.

I was hoping my first interpretation is the correct one?

Yes it is, the second paragraph doesn't contradict the first one - the second 'bit' refers to the second 2020/21 contribution.

Dilbert_Investor

thanks thats clear.

Would one way to avoid this risk altogether be to drawdown the first ISA to zero (as its flexible), close it and put the the refund back into the second?  Is this permitted and would it avoid the first ISA being reported to HMRC at all?