Too much in ISAs 18 October 2022 at 9:57AM in ISAs & tax-free savings 7 replies 394 views

Napista

Can you put £20000 shared between variou ISAs (eg. £4k in LISA, £8K cash ISA, £8K S&S ISA)

Or do you have a separate £20k allowance (£4k for LISA) for each type of ISA in one tax year?

I think I've misread it and thought it was the latter and have added more into ISAs than I should've done, filling a cash ISA and putting additional money I to £s&s ISA/Lisa. Please can so someone confirm if I have messed up and what I should do please? 

Albermarle

Can you put £20000 shared between variou ISAs (eg. £4k in LISA, £8K cash ISA, £8K S&S ISA)
Yes

Or do you have a separate £20k allowance (£4k for LISA) for each type of ISA in one tax year? 
No

Probably best to supply exact details of what you have done to get the best guidance on what to do next.

Napista

Thanks (wish I'd confirmed earlier, the language has been difficult to understand)

Ive been dripping £ into s&s ISA this year (currently used about £4k of allowance), recently opened a LISA with £1k and opened a cash ISA with 20k in recently). LISA AND S&S ISA both with same provider, cash ISA elsewhere. I would probably rather prioritise my allowance s&S allowance of possible. I can withdraw and close my cash ISA and be within my allowance but not sure if I need to inform.   

Thanks 

eskbanker

Napista said:

Ive been dripping £ into s&s ISA this year (currently used about £4k of allowance), recently opened a LISA with £1k and opened a cash ISA with 20k in recently). LISA AND S&S ISA both with same provider, cash ISA elsewhere. I would probably rather prioritise my allowance s&S allowance of possible. I can withdraw and close my cash ISA and be within my allowance but not sure if I need to inform.

Simply withdrawing and closing the cash ISA doesn't necessarily fully resolve the situation, but how recently did you open it, i.e. are you still within a 14-day cooling-off period?

Napista

I think I opened cash ISA on the 6th so potentially I could contact them to close and rectify? That could maybe cover me? As then I'd be within the allowance?

eskbanker

Napista said:

I think I opened cash ISA on the 6th so potentially I could contact them to close and rectify? That could maybe cover me? As then I'd be within the allowance?

Yes, but you'd need to make it clear that you're cancelling the account rather than simply closing it.  Having done so, you'd still be free to open another cash ISA but only funding it up to your residual allowance, once you've worked out your target split between the three types....

Napista

Thank you so much @eskbanker have cancelled and so should be fine now. Pleased to find out while it was still easy to resolve!

Albermarle

There are a lot of ISA rules, that are regularly misunderstood. Reading through this forum should add to your knowledge.