ISA rules

Bodsoft39

Confused about what ISA rules allow.

For instance, If I have a current tax year ISA funded to the max 20K with new money from savings and I have old ISA's from previous tax years  with now poor interest rates. Can I open another ISA in the current tax year and transfer money from the old ISA's into it and thus enjoy  improved interest on my old investments.

Assuming of course the provider of the new ISA allows transfers in.

Can't see that  this would disadvantage HMRC in any way but I am also advised you can't open more than one ISA in a current tax year?

Please advise

Regards

eskbanker

You can do what you like with money from previous years and even for current year contributions, the rules now allow these to be spread around multiple ISAs, although some providers are still playing catch-up on that.

There has never been a rule about not being allowed to open more than one ISA in a tax year - there used to be a rule that prevented new money being paid into more than one ISA of each type in any tax year but that was removed as from this year.

So, short answer is yes, you can do what you propose....

dunstonh

Can't see that  this would disadvantage HMRC in any way but I am also advised you can't open more than one ISA in a current tax year?

You can open as many ISAs as you like in a year.    The rules WERE a contribution rule. i.e. you couldn't pay into more than one ISA of that type per tax year.  That rule no longer exists as of this tax year.

Now, as long as you don't exceed £20k of new contributions to any ISA type over the tax year, then that is what matters.

eskbanker

dunstonh said:
Now, as long as you don't exceed £20k of new contributions to any ISA type over the tax year, then that is what matters.

You'll obviously know this but, just to be clear for OP and others, £20K is the aggregate limit for annual ISA contributions, not a limit per type!

Lyndi7

I opened a Trading 212 Isa but had trouble connecting my bank account to it and I didn't put any money in it.  I closed the isa as too much trouble.  Can I now open another Isa with a different bank or do I have to wait until next year?

gravel_2

Lyndi7 said:

I opened a Trading 212 Isa but had trouble connecting my bank account to it and I didn't put any money in it.  I closed the isa as too much trouble.  Can I now open another Isa with a different bank or do I have to wait until next year?

Yes you can.