Two S&S ISAs in one year

dobalex

I opened new S&S ISA this tax year (let's call with provider 1), paid in 1000 pounds when opening S&S ISA account, then transferred my previous years flexible cash ISA to provider 1.

Due to some reasons, I will not be staying with provider 1.

I contacted another provider 2 and they told me that I can open another S&S ISA with them this year, but will have to transfer all my ISA holidings from provider 1 to provider 2.

I am very confused with information I have. On the one hand, I have read that I am not allowed to open and pay into more then one S&S ISA in the same tax year. On the other hand, provider 2 told me that I am allowed to do that if I transfer all money paid this year from provider 1 to provider 2 and close my account with provider 1.

Could you please advise if that is correct and I am allowed to open another S&S ISA with provider 2 this year, transfer all funds from provider 1 to provider 2 and then pay the rest of my ISA allowance (19000) to provider 2? Or provider 2 told me incorrect information and I am not allowed to do that?

Thanks in advance.

dunstonh

I contacted another provider 2 and they told me that I can open another S&S ISA with them this year, but will have to transfer all my ISA holidings from provider 1 to provider 2.

Provider 2 cannot receive any money in the 2022/23 tax year contribution allowance without transferring provider 1.    

Provider 2 can receive transfers of previous years money or this years money.

If you transfer provider 1 to 2 then you can pay into provider 2 but you cannot pay into provider 1 after that.

dobalex

dunstonh said:

I contacted another provider 2 and they told me that I can open another S&S ISA with them this year, but will have to transfer all my ISA holidings from provider 1 to provider 2.

Provider 2 cannot receive any money in the 2022/23 tax year contribution allowance without transferring provider 1.    

Provider 2 can receive transfers of previous years money or this years money.

If you transfer provider 1 to 2 then you can pay into provider 2 but you cannot pay into provider 1 after that.

That suits me perfectly! I want to transfer all money from provider 1 to provider 2 and only after that pay remaining ISA allowance into provider 2, close account with provider 1. Thanks a lot!

However, what I don't underatnd here is this: you can only subscribe to one of each type of ISA each tax year.

I have already subscribed to S&S ISA provider 1 this tax year. Even if I trasfer all my funds from provider 1 to provider 2 doesn't this count as subscribing to more then one S&S ISA in the same year?

Albermarle

On the one hand, I have read that I am not allowed to open and pay into more then one S&S ISA in the same tax year.

That is not correct. You can open as many as you like but you can only put new money into one each tax year.

By transferring your 22/23 contributions from Provider 1 to 2 , then you have only contributed new money to one S&S ISA ( even though you have changed provider)

dobalex

Albermarle said:

On the one hand, I have read that I am not allowed to open and pay into more then one S&S ISA in the same tax year.

That is not correct. You can open as many as you like but you can only put new money into one each tax year.

By transferring your 22/23 contributions from Provider 1 to 2 , then you have only contributed new money to one S&S ISA ( even though you have changed provider)

It is clear now! Thanks so much!

baggins11

Sorry can I just ask another question on this. I want to change s&s provider next tax Yr but not necessarily close my current isa.  So is this OK to have 2 open as long as I only contribute to one providers isa in any tax Yr.

I have realised I want more diversity than just vanguard products in my isa (currently with vanguard) but I wouldn't want to sell down and re-buy what I have in a transfer.

Albermarle

So is this OK to have 2 open as long as I only contribute to one providers isa in any tax Yr.

Yes it is . You can have as many as you like open ( although probably not very sensible ti have too many from an admin point of view.)

eskbanker

baggins11 said:

I have realised I want more diversity than just vanguard products in my isa (currently with vanguard) but I wouldn't want to sell down and re-buy what I have in a transfer.

S&S ISA transfers can generally be carried out 'in specie', i.e. holdings transferred directly between providers without being sold and repurchased, provided the receiving provider is able to hold them (which is unlikely to be an issue for full-function platforms and mainstream Vanguard funds).

dunstonh

However, what I don't underatnd here is this: you can only subscribe to one of each type of ISA each tax year.

Subscribe means new money going into an ISA.   

I have already subscribed to S&S ISA provider 1 this tax year. Even if I trasfer all my funds from provider 1 to provider 2 doesn't this count as subscribing to more then one S&S ISA in the same year?

No. Because by transferring this year's contributions, you have moved your subscription to provider 2.