Isa Rules

BuBBlegum48

Are you allowed to have 2 Isas?
One  Isa is 1 year fixed. The other a cash Isa. Both have £20000 for 22/23.
If the answer us NO. Are you able to just transfer/withdraw funds and close the Cash Isa?

refluxer

Ely_Lawrence said:

Are you allowed to have 2 Isas?
One  Isa is 1 year fixed. The other a cash Isa. Both have £20000 for 22/23.

There's no limit to the number of cash ISAs you can have, but ISA rules state that you can only pay new subscriptions (up to a maximum of £20k) into one cash ISA at any one time during the tax year.

Both of the ISAs you mention are cash ISAs so have you paid any money into either (or both) of these during the current tax year ? ISA transfers don't count towards the £20k, so we're just talking about new subscriptions.

25_Years_On

The answer is no. You should close the Cash ISA as soon as possible. You can have two cash based ISAs but you you can only contribute to one in each year (excluding transfers). HMRC will find out of course.

jimjames

Ely_Lawrence said:

Are you allowed to have 2 Isas?
One  Isa is 1 year fixed. The other a cash Isa. Both have £20000 for 22/23.
If the answer us NO. Are you able to just transfer/withdraw funds and close the Cash Isa?

Presumably the fixed one is a cash ISA as well? 

You are allowed 2 ISAs per year, you can have a cash ISA and a stocks and shares ISA. You can't pay in more than £20,000 across them both each year and you can't pay in new money to more than 1 of each type.

themitewilltrot

Hi can I piggy back this thread to check my thinking.

I have subscribed to a Vanguard stocks and shares ISA for the past few years.

I plan on stopping my vanguard direct debit after the payment in March and opening a Shepherds Friendly S+S ISA in April (for the topcashback cashback).

Once the cashback is paid (hopefully around 6 months) I will transfer the entire SF ISA into my vanguard ISA and set up DDs into vanguard again.

Have I got this right regarding the ISA rules? Once the SF ISA is transferred out and closed, then I can then subscribe to the vanguard ISA in the same tax year?

(I understand the SF cashback is a gamble and they may also apply an MVR to my funds when I transfer them out, I'm willing to give it a punt)

eskbanker

themitewilltrot said:

Hi can I piggy back this thread to check my thinking.

It's politer to start your own thread when your issue is only loosely related to this one, but yes, transferring (all) current year money allows ongoing subscription to the new product if there's enough residual headroom from the annual allowance.  If you need to discuss further, then starting your own thread would be more appropriate....

Albermarle

themitewilltrot said:

Hi can I piggy back this thread to check my thinking.

I have subscribed to a Vanguard stocks and shares ISA for the past few years.

I plan on stopping my vanguard direct debit after the payment in March and opening a Shepherds Friendly S+S ISA in April (for the topcashback cashback).

Once the cashback is paid (hopefully around 6 months) I will transfer the entire SF ISA into my vanguard ISA and set up DDs into vanguard again.

Have I got this right regarding the ISA rules? Once the SF ISA is transferred out and closed, then I can then subscribe to the vanguard ISA in the same tax year?

(I understand the SF cashback is a gamble and they may also apply an MVR to my funds when I transfer them out, I'm willing to give it a punt)

For you and the OP, an hour reading through the forum would be useful. It will help get you both up to speed with the ISA rules,  as every question about ISA's has been asked and answered numerous times before.