Two S&S ISAs in same financial year ...

Andysaint

Hi.

I have had a S&S ISA with Vanguard for about a year now, and last paid into it around June but had to withdraw the funds. There is now £4 left in it.

I had just opened a new S&S ISA via InvestEngine and funded it with £100, but didn't realise you aren't allowed to pay into two such ISAs within the same financial year!

I have submitted a request to now transfer my Vanguard ISA to the InvestEngine one. 

Can anyone advise if I will be penalised for this?  .... and what happens in these situations?

Thanks

Swipe

Many others when they've contacted HMRC have been advised to do nothing and wait to see if they get in contact with you at the end of the tax year. I've not heard of anyone being penalised for mistakenly opening two ISAs in a single tax year.

Andysaint

Swipe said:

Many others when they've contacted HMRC have been advised to do nothing and wait to see if they get in contact with you at the end of the tax year. I've not heard of anyone being penalised for mistakenly opening two ISAs in a single tax year.

Thanks for replying. Will just sit tight and see if they get in touch. 😉

masonic

If you succeed in transferring the Vanguard ISA before the end of the tax year, then HMRC would be none the wiser. The alternative is that the Vanguard ISA is flexible, so removing all of the money you paid in this tax year is likely to avoid HMRC picking up on the error.

Andysaint

masonic said:

If you succeed in transferring the Vanguard ISA before the end of the tax year, then HMRC would be none the wiser. The alternative is that the Vanguard ISA is flexible, so removing all of the money you paid in this tax year is likely to avoid HMRC picking up on the error.

Fingers crossed. It was only a few hundred I had really paid into Vanguard and took out later.

Should be transferred in next month or so, so will only have one ISA again. Thanks again

dunstonh

Can anyone advise if I will be penalised for this?  .... and what happens in these situations?

It is a bit of an FAQ in the ISA section.

You get one error per NI number where HMRC will write to you about 18 months later telling you they have identified a mistake and tell you not to do it again.

Albermarle

but didn't realise you aren't allowed to pay into two such ISAs within the same financial year!

There is a sub forum for ISA's . If you read through that it will help to bring you up to speed with all various ISA rules.
ISAs & tax-free savings — MoneySavingExpert Forum