85k FSCF protection…is it irrelevant?

theinbetweener007

jimjames said:

theinbetweener007 said:

Hi all

I should also state that I have 1 S&S ISA and 1 new cash isa which I opened recently meaning, I think, that I cannot open another cash isa this year. 

If the cash ISA is opened this year and new money paid in then you cannot open another cash ISA and pay more new money in. You can still however open any number of cash ISAs and transfer money from your S&S ISA to them, assuming the provider allows partial transfers.

Is legit the case? If you Google it, I only ever seem to find info saying you can only open one isa of each type a year. But I’ve always thought that might be poor wording as it might be ok to open more if you only transfer and don’t pay in any of this years allowance. 

Daliah

theinbetweener007 said:

jimjames said:

theinbetweener007 said:

Hi all

I should also state that I have 1 S&S ISA and 1 new cash isa which I opened recently meaning, I think, that I cannot open another cash isa this year. 

If the cash ISA is opened this year and new money paid in then you cannot open another cash ISA and pay more new money in. You can still however open any number of cash ISAs and transfer money from your S&S ISA to them, assuming the provider allows partial transfers.

Is legit the case? If you Google it, I only ever seem to find info saying you can only open one isa of each type a year. But I’ve always thought that might be poor wording as it might be ok to open more if you only transfer and don’t pay in any of this years allowance. 

Yes, you can open any number of ISAs in the same tax year but you can only subscribe to (= put new money into) one of each type.

If your existing provider allows multiple transfers out, you could open several ISAs and transfer into each of them. E.g. you could create a ladder of 1, 2, 3, 4 and 5 years fixed term ISAs and have £20K transferred into each(whilst not paying a penny of new money into them). Note I am not saying this is a sensible thing to do - it merely demonstrates what could legally be done.

Transfers must be processed by the new ISA provider. If you do it yourself, your money loses its ISA status and would count as new money.