ISA - rules re: number of new accounts each year

altyfc

I'm sure I read somewhere that you can only open one new ISA account per annum.

My wife changed her cash ISA from Barclays to Lloyds at the beginning of the current tax year. I would like her to also open a shares account through another party.

Does the opening of the Lloyds account preclude her from doing this this year? (Does the Lloyds account get treated as a 'new account'? I'm guessing 'yes'. Does the 'one a year' rule apply to both cash and shares ISAs combined, or is it one of each?)

Thanks...

Baldur

See "Investment limits" on the HMRC ISA Factsheet.

altyfc

Thanks for the link... if I'm interpreting this bit correctly...

Duplication

Remember you cannot invest in more than one cash ISA, or more than one stocks and shares ISA in the same tax year.

Mistakes do happen. If you do invest in more than one ISA of the same type in a tax year, the second ISA will not be tax-advantaged.

This means that my wife could open a shares account in this tax year...?

Baldur

altyfc wrote: »

Thanks for the link... if I'm interpreting this bit correctly...

This means that my wife could open a shares account in this tax year...?

Yes - one of each type can be opened per tax year (up to the limits shown in the HMRC leaflet).

JohalaReewi

Depends what you mean by 'open'. You can 'open' (apply for) as many ISAs as you like in a tax year but you can only 'subscribe' (pay new money in) to one (ie. one CASH and one SHARES subject to limits).

There is a recent thread about this...
http://forums.moneysavingexpert.com/showthread.html?p=10187715