Opening more than one S&S ISA same tax year

hallmark

Quick but slightly niche question:

Is it OK to open two brand new S&S ISAs with different providers in the same year if you only pay new money into one, and you transfer an existing cash ISA into the other?

It's specifically opening two new S&S ISAs I'm talking about (i.e. I know that it's OK to "have" two S&S ISAs as long as you don't pay new money into both in the same tax year)

The reason I ask is I've seen financial advice websites that literally say "you cannot open two S&S ISAs in the same year but I didn't think that was correct, I thought that was fine if you only paid new money into one and transferred into the other.

Thanks

FatherTireseus

That should be OK.  What you couldn't do would be to open two S&S ISAs, and pay £10k into each in one tax year.  But transferring an existing ISA isn't new money so it's OK to open a second new one if it is only for a transfer. 

If you were hoping to do it before the end of this current tax year time is running out and a transfer usually takes weeks rather than days. But if it's an advance query for the next tax year, all should be fine.

hallmark

This kind of advice (which I believe to be incorrect) is what prompted me to ask:

https://theprogressionplaybook.com/can-i-pay-into-two-isas-in-the-same-tax-year/

Can I open two different Stocks and Shares ISAs?

You cannot open two different Stocks & Shares ISAs in the same tax year. You are only able to open and contribute to one ISA of each ISA category each year. Similarly, you cannot contribute to two different Stocks & Shares ISAs in the same tax year held on two different platforms.

To put it simply, never open more than one Stocks and Shares ISA in each tax year (April to April) and never contribute money to more than one Stocks and Shares ISA in a tax year.

george4064

hallmark said:

This kind of advice (which I believe to be incorrect) is what prompted me to ask:

https://theprogressionplaybook.com/can-i-pay-into-two-isas-in-the-same-tax-year/

Can I open two different Stocks and Shares ISAs?

You cannot open two different Stocks & Shares ISAs in the same tax year. You are only able to open and contribute to one ISA of each ISA category each year. Similarly, you cannot contribute to two different Stocks & Shares ISAs in the same tax year held on two different platforms.

To put it simply, never open more than one Stocks and Shares ISA in each tax year (April to April) and never contribute money to more than one Stocks and Shares ISA in a tax year.

I think it’s only incorrect in that it hasn’t considered the possibility of transferring assets to one of the opened S&S ISA.

Daliah

You can open more than one in the same tax year but are only allowed to pay new money into one.

But why would have more than one S&S ISA? Each of them will come with a cost.

hallmark

Mainly because of the FSCS limit (possibly a silly reason but I try to avoid busting that unecessarily).

Daliah

hallmark said:

Mainly because of the FSCS limit (possibly a silly reason but I try to avoid busting that unecessarily).

You don't need  to worry about keeping your S&S ISA below £85K.

hallmark

How do you mean sorry?

Daliah

Your money is held by the investment provider (Fund House etc), not by the ISA provider. If your ISA provider goes bust, you still own the investments. You may wish to ensure you don't have more than £85K of any given investment provider but you can have a limitless number of investment providers in the same ISA.

The only time you'd need to worry about the ISA provider is if you kept more than £85K in cash in your S&S ISA. But this would not be something you'd do, anyway?

Malchester

george4064 said:

hallmark said:

This kind of advice (which I believe to be incorrect) is what prompted me to ask:

https://theprogressionplaybook.com/can-i-pay-into-two-isas-in-the-same-tax-year/

Can I open two different Stocks and Shares ISAs?

You cannot open two different Stocks & Shares ISAs in the same tax year. You are only able to open and contribute to one ISA of each ISA category each year. Similarly, you cannot contribute to two different Stocks & Shares ISAs in the same tax year held on two different platforms.

To put it simply, never open more than one Stocks and Shares ISA in each tax year (April to April) and never contribute money to more than one Stocks and Shares ISA in a tax year.

I think it’s only incorrect in that it hasn’t considered the possibility of transferring assets to one of the opened S&S ISA.

It is incorrect in that it says you cannot open two similar ISAs in the same tax year. That is wrong. It should say you cannot contribute new funds to two similar ISAs in the same tax year.

Albermarle

hallmark said:

How do you mean sorry?

As the poster Daliah says , you do not need to really worry about the £85K limit for investment platforms, especially as long as you stick to mainstream ones . Many posters on this forum have hundreds of thousands of Pounds with just one provider , for pensions mainly, but also S&S ISA's and general investment accounts.