Stocks and Shares ISA confusion

notmartin

I opened one of those Stocks and Shares ISA where the provider picks the shares/portfolios and you just select a level of risk. I now want to open a DIY Stocks and Shares ISA where I put some shares in there that I pick. I thought I could do this in the same tax year, thinking they are different versions of ISA, but are they regarded as the same investment vehicle? i.e. they are both stocks and shares ISAs. Can I open one of each in the same tax year? if not, can I close the first stocks and shares ISA and open the DIY stocks and shares ISA instead?

eskbanker

You can open as many S&S ISAs as you like, but can only pay new money into one in any tax year.

If you haven't paid into your first one since 6 April, then you can stop doing so and pay into a new one.

If you have funded the first one this year, then you can transfer it to another provider if you wish, which would then allow you to fund that second one instead....

brasso

eskbanker said:

You can open as many S&S ISAs as you like, but can only pay new money into one in any tax year.

If you haven't paid into your first one since 6 April, then you can stop doing so and pay into a new one.

If you have funded the first one this year, then you can transfer it to another provider if you wish, which would then allow you to fund that second one instead....

Surely you can pay new money into an ISA account as long as it doesn't exceed the £20k max for that tax year? As it happens I always pay in one lump sum and leave it at that but I'm sure on Hargreaves Lansdown for instance, it invites monthly payments.

Doctor_Who

I thought I could do this in the same tax year, thinking they are different versions of ISA, but are they regarded as the same investment vehicle?

They are both S&SISAs, so you can only subscribe to one each tax year.

if not, can I close the first stocks and shares ISA and open the DIY stocks and shares ISA instead?

Don't close the first S&SISA and withdraw the money. If you want to use a DIY platform then open a new S&SISA and transfer the first S&SISA using the DIY platform's ISA transfer process.

eskbanker

brasso said:

eskbanker said:

You can open as many S&S ISAs as you like, but can only pay new money into one in any tax year.

If you haven't paid into your first one since 6 April, then you can stop doing so and pay into a new one.

If you have funded the first one this year, then you can transfer it to another provider if you wish, which would then allow you to fund that second one instead....

Surely you can pay new money into an ISA account as long as it doesn't exceed the £20k max for that tax year? As it happens I always pay in one lump sum and leave it at that but I'm sure on Hargreaves Lansdown for instance, it invites monthly payments.

Yes, you can make multiple payments into the same ISA during the tax year, subject to the £20K limit, but don't believe I stated or implied otherwise?

Albermarle

I opened one of those Stocks and Shares ISA where the provider picks the shares/portfolios and you just select a level of risk. I now want to open a DIY Stocks and Shares ISA where I put some shares in there that I pick. 

I am pretty sure that there will be no individual company shares in your current S&S ISA. 

Investing in individual company shares is seen as very high risk, unless you are experienced in this area.

jimjames

brasso said:

eskbanker said:

You can open as many S&S ISAs as you like, but can only pay new money into one in any tax year.

If you haven't paid into your first one since 6 April, then you can stop doing so and pay into a new one.

If you have funded the first one this year, then you can transfer it to another provider if you wish, which would then allow you to fund that second one instead....

Surely you can pay new money into an ISA account as long as it doesn't exceed the £20k max for that tax year? As it happens I always pay in one lump sum and leave it at that but I'm sure on Hargreaves Lansdown for instance, it invites monthly payments.

Not if you've already paid money into another ISA of the same type this financial year. The OP isn't clear if they opened an ISA and funded it or if they just opened it without adding any money.

notmartin

Doctor_Who said:

I thought I could do this in the same tax year, thinking they are different versions of ISA, but are they regarded as the same investment vehicle?

They are both S&SISAs, so you can only subscribe to one each tax year.

if not, can I close the first stocks and shares ISA and open the DIY stocks and shares ISA instead?

Don't close the first S&SISA and withdraw the money. If you want to use a DIY platform then open a new S&SISA and transfer the first S&SISA using the DIY platform's ISA transfer process.

thanks for the response. so it won't be a problem to transfer the Managed S&SISA into the DIY one?

notmartin

eskbanker said:

You can open as many S&S ISAs as you like, but can only pay new money into one in any tax year.

If you haven't paid into your first one since 6 April, then you can stop doing so and pay into a new one.

If you have funded the first one this year, then you can transfer it to another provider if you wish, which would then allow you to fund that second one instead....

thanks for the response. must check if I opened it this FY or just before this FY

eskbanker

notmartin said:

eskbanker said:

You can open as many S&S ISAs as you like, but can only pay new money into one in any tax year.

If you haven't paid into your first one since 6 April, then you can stop doing so and pay into a new one.

If you have funded the first one this year, then you can transfer it to another provider if you wish, which would then allow you to fund that second one instead....

thanks for the response. must check if I opened it this FY or just before this FY

No, the date of opening isn't significant, it's the date of most recently funding the account that's important.

Doctor_Who

notmartin said:

Doctor_Who said:

I thought I could do this in the same tax year, thinking they are different versions of ISA, but are they regarded as the same investment vehicle?

They are both S&SISAs, so you can only subscribe to one each tax year.

if not, can I close the first stocks and shares ISA and open the DIY stocks and shares ISA instead?

Don't close the first S&SISA and withdraw the money. If you want to use a DIY platform then open a new S&SISA and transfer the first S&SISA using the DIY platform's ISA transfer process.

thanks for the response. so it won't be a problem to transfer the Managed S&SISA into the DIY one?

It shouldn't be a problem. You will probably have to do the transfer as cash since the new platform is unlikely to offer the same investments as your current provider. You need to decide on a platform, open a S&SISA and then use their ISA transfer service. If you have paid money into the current S&SISA this tax year then that money must stay together, which isn't an issue if you plan to transfer everything to the new platform.