Flexible ISA - can I open two cash ISAs in one tax year? 25 August 2022 at 12:53PM in ISAs & tax-free savings 4 replies 163 views

Simavon

I have a flexible ISA which was opened as a transfer of a previous year's ISA from another provider. The rate on this ISA hasn't kept up as much with interest rate rises and the same provider has a new ISA available with a higher rate. But as you can only transfer this year's subscriptions once, I don't want to paint myself into a corner too soon.

However, as I have flexibly withdrawn all this year's subscriptions to date, I think the position today is that I have *not* subscribed to any cash ISA this year, and am free to open another.

Am I correct?

eskbanker

Simavon said:

But as you can only transfer this year's subscriptions once, I don't want to paint myself into a corner too soon.

There is no such rule, so the rest of your post probably doesn't apply....

Simavon

Thanks - did I imagine that rule or have the rules changed? Anyway, I'll just do the transfer (once I replace my flexible withdrawals).

eskbanker

Simavon said:

Thanks - did I imagine that rule or have the rules changed?

I certainly don't recall there ever being such a rule, so don't know where you got it from, but the current situation is clear right from the first line of https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager

Transferring an ISA

Investors have the right to transfer their ISAs whenever they want and this right must be included in the manager’s ISA terms and conditions.

masonic

Simavon said:

Thanks - did I imagine that rule or have the rules changed? Anyway, I'll just do the transfer (once I replace my flexible withdrawals).

The only "rule" that has ever had such a restriction is that if you self-transfer a current year ISA in error instead of doing so through your providers, you can only be let off once per tax year.