Closed my S&S ISA. Can I open another one?

rogueelement1

Hello All,
I've closed my vanguard S&S ISA and wish to open a HL S&S ISA. Is this legally allowed?
I have paid in money to the vanguard one since April.
All help and guidance is appreciated. 

Doctor_Who

What happened to the money that was in the Vanguard S&SISA - did you withdraw it or did you transfer it to another S&SISA provider? If you've withdrawn all of the money and closed the Vanguard ISA account then you can open and fund (taking into account money added this year to the Vanguard ISA) a S&SISA with HL. However, that begs the question why you didn't just transfer the Vanguard ISA to HL to retain the money's ISA status?

rogueelement1

It was only £500 so coupled with that and what I'll put in for the rest of year. Won't come near my 20k limit. But yeah in hindsight that wouldn't have been the better option. 

jimjames

Any reason you've closed Vanguard in favour of HL? The HL fees are 3x what Vanguard charge so it's normally the other direction.

masonic

You may be able to get Vanguard to reinstate your S&S ISA so that you can transfer it to HL. If not, then your only alternative to use any remaining 2023/24 allowance is to open a different type of ISA (e.g. cash) and then transfer this to a new S&S ISA in 2024/25.

Doctor_Who

masonic said:

You may be able to get Vanguard to reinstate your S&S ISA so that you can transfer it to HL. If not, then your only alternative to use any remaining 2023/24 allowance is to open a different type of ISA (e.g. cash) and then transfer this to a new S&S ISA in 2024/25.

So if you withdraw all the money from one type of ISA and close it, you can't open (and fund) another of the same type of ISA in the same tax year? I suppose you will have been deemed to have subscribed to two ISAs of the same type, even though you only have one.

OP - I apologise if I've given incorrect information in my post above.

masonic

Doctor_Who said:

masonic said:

You may be able to get Vanguard to reinstate your S&S ISA so that you can transfer it to HL. If not, then your only alternative to use any remaining 2023/24 allowance is to open a different type of ISA (e.g. cash) and then transfer this to a new S&S ISA in 2024/25.

So if you withdraw all the money from one type of ISA and close it, you can't open (and fund) another of the same type of ISA in the same tax year? I suppose you will have been deemed to have subscribed to two ISAs of the same type, even though you only have one.

OP - I apologise if I've given incorrect information in my post above.

That is correct, you are only allowed to subscribe to one of each type of ISA in a single tax year, so unless the Vanguard S&S ISA is reinstated and transferred, subscribing to a HL S&S ISA in the same tax year would result in an invalid combination of ISAs.

For cash ISAs, there is a self-transfer clause in the ISA rules that allows someone to, as the name suggests, self-transfer a cash ISA without penalty, but this does only apply to cash ISAs and can be availed only once in a tax year.