Two cash ISA not allowed?

jimjames

molerat said:

You can only fund one ISA per year with new money.

You also can open, and transfer into, as many ISAs as you wish in a year.

You might want to just correct that (well at least until April) It's entirely within the rules to have a cash ISA and S&S ISA

You can only fund one ISA of each type per year with new money.

Eco_Miser

MichaelAP said:

ColdIron said:

Yes if your new provider accepts transfers. If they don't you can find another provider that does

That is great news… The provider which I funded £20,000 this year also does transfers. Obviously I cannot transfer my other ISA into that new ISA but I can open another ISA with them and transfer my old ISA into it.

It's not obvious at all. Unless the T&Cs of the new ISA forbid more than one deposit (or give a limited funding window) you can add to it by transferring the old ISA (or multiple old ISAs if you have them). The £20,000 is a limit for new subscriptions, per year, not the total in the account.

pecunianonolet

Same here for me for Virgin and they state the account can be opened with £0. I have made my full subscription with Shawbrook for this year already so as long as I not pay into the Virgin ISA and they do not close the account no rules are broken. Luckily, they allow to open aith 0 and do not specify a funding window and it is flexible too. The question is if they apply the rate applicable at opening or when the first funds go in remains to be seen. 

Similar works with Coventry because they do not enforce their T&C with the minimum £1 funding requirenment and do not close them down if not funded. I very much hope it stays that way.

Opening an ISA account and subscribing to one are two different pairs of shoes.

All becoming irrelevant come 6th April :-)

lake888

Reed_Richards said:

What you do with ISAs containing only money contributed before 6th April 2023 has nothing whatsoever to do with your ISA arrangements for the current tax year.  If this applies to your old low interest ISA then you can transfer it wherever you like (and you initiate the transfer by applying to your new provider).  If you contributed to both the old low interest ISA and the one you opened with a different provider this tax year then you broke the current rules.

That's what my understand as well.  It's only HMRC's reply that makes a bit confusion.

eskbanker

lake888 said:

Reed_Richards said:

What you do with ISAs containing only money contributed before 6th April 2023 has nothing whatsoever to do with your ISA arrangements for the current tax year.  If this applies to your old low interest ISA then you can transfer it wherever you like (and you initiate the transfer by applying to your new provider).  If you contributed to both the old low interest ISA and the one you opened with a different provider this tax year then you broke the current rules.

That's what my understand as well.  It's only HMRC's reply that makes a bit confusion.

As pointed out earlier, your precis of what was said on the other forum doesn't make sense, are you able to share a link to the relevant thread so we can see the full context and exact wording?

The question of whether one cash ISA can be funded with new money and another one (or more) used for transfers of prior year money in the same tax year is asked and answered ("yes") on here very regularly if that's what you're looking to ascertain?

Reed_Richards

lake888 said:

Reed_Richards said:

What you do with ISAs containing only money contributed before 6th April 2023 has nothing whatsoever to do with your ISA arrangements for the current tax year.  If this applies to your old low interest ISA then you can transfer it wherever you like (and you initiate the transfer by applying to your new provider).  If you contributed to both the old low interest ISA and the one you opened with a different provider this tax year then you broke the current rules.

That's what my understand as well.  It's only HMRC's reply that makes a bit confusion.

I think the confusion only arises because HMRC think that "opening an ISA" means filling out the forms and depositing some money.  It's not really an ISA if it has never been used but you can certainly fill out the application forms, possibly be given an account number, but then take things no further.  There isn't unambiguous terminology to describe doing that, other than by spelling it out as I have. 

masonic

Reed_Richards said:

wiseonesomeofthetime said:

masonic said:

You cannot open an ISA and leave it empty. Providers will close ISAs that have not been used after a period of time.

Oh no they don't. I have a Virgin Money one that they have left open, unfunded, for three years, come April 2024!

I had opened it with a view to transferring in an external ISA, only for the rate to be beaten the following day (or two), so never proceded.

It still, to this day, shows up in my list of open accounts with VM.

So come the 24/25 tax year you can put a bit of money in and see if it works, i.e. that you are allowed to make a deposit.  If so, you may well be able to claim some sort of record.  But I agree with @masonic , a competent provider should not allow that to happen.  

Due to the change in the rules in the next tax year, providers will no longer need to observe dormancy and reactivation rules for ISAs, so this might be allowed, but general guidelines around dormant savings accounts should really mean that providers at a minimum freeze accounts that have not been used for years.