Numpty question about Stocks & Shares ISA
Discussion
My wife pays into a Stocks & Shares ISA every month.
We were going to open another one in her name as she doesn't use her allowance up, but then I read this:
"You can only pay into one Stocks and Shares ISA in each tax year, but you can open a new ISA with a different provider each year if you want to."
- Does this mean if you pay in regularly you can only ever have one?
- If you wanted more than one, you would have to cancel the regular payments in tax year 1, and open the new one with a lump sum in tax year 2? Then if you wanted to renew regular payments that would need to be in tax year 3. Is that correct?
Apologies if it's obvious, but I've got to the point where I can't see the wood for the trees....
We were going to open another one in her name as she doesn't use her allowance up, but then I read this:
"You can only pay into one Stocks and Shares ISA in each tax year, but you can open a new ISA with a different provider each year if you want to."
- Does this mean if you pay in regularly you can only ever have one?
- If you wanted more than one, you would have to cancel the regular payments in tax year 1, and open the new one with a lump sum in tax year 2? Then if you wanted to renew regular payments that would need to be in tax year 3. Is that correct?
Apologies if it's obvious, but I've got to the point where I can't see the wood for the trees....
It only applies to different providers. The fact you already have a provider means you can top up with them for this tax year to the limit allowed but you can't open one with another provider before next tax year.
You don't have to close one to open another.
If you are with one of the big providers they will already offer a full range of ISAs so just top up in the fund you want. You may be confusing the service provider with individual funds. You can have as many funds as you want with a single provider and they will also likely do cash ISA and also a 'cash park' facility within an S&S ISA where you can put the allowance.
Its going up to £20k for the 2017/18 year so unless you plan to use all that anyway there isn't a major panic to use up this years allowance.
You don't have to close one to open another.
If you are with one of the big providers they will already offer a full range of ISAs so just top up in the fund you want. You may be confusing the service provider with individual funds. You can have as many funds as you want with a single provider and they will also likely do cash ISA and also a 'cash park' facility within an S&S ISA where you can put the allowance.
Its going up to £20k for the 2017/18 year so unless you plan to use all that anyway there isn't a major panic to use up this years allowance.
There's a common misconception about stocks and shares ISAs, and I think it's because of the providers.
There are two components to an ISA - the account itself (the wrapper) and the stocks and shares and other investments you put into it. It sounds like the ISA your wife has only invests into a single fund. It should be possible to put a second fund into a single ISA (Mine has five in it at the moment and I'm sure lots of people have many more) rather than opening a new ISA.
There are two components to an ISA - the account itself (the wrapper) and the stocks and shares and other investments you put into it. It sounds like the ISA your wife has only invests into a single fund. It should be possible to put a second fund into a single ISA (Mine has five in it at the moment and I'm sure lots of people have many more) rather than opening a new ISA.
Rick,
Para 3.14 of the bible might be what you're looking for.
https://www.gov.uk/government/uploads/system/uploa...
Para 3.14 of the bible might be what you're looking for.
https://www.gov.uk/government/uploads/system/uploa...
I'm finding this thread confusing and hope this post may help elaborate:
You can only have one stocks and shares (or cash, for that matter) ISA in any given tax year.
The ISA itself is only a tax administration function (know as a 'wrapper') provided by an HMRC approved ISA Plan Manager.
Within your ISA you can chose as many funds (or direct equities) as you want from those made available by your ISA Plan Manager
These funds are usually always provided and run by completely separate Fund Managers who have no other connection to your ISA Plan Manager.
To this extent there is no requirement to hold more than one ISA in any given tax year, nor is there any conceivable benefit in doing so (if you could).
Only if the ISA Plan Manager IS the Fund Manager are you limited to that Fund Manager's funds, but again they will have many.
If you feel restricted by the funds available to you in this instance you can TRANSFER your ISA to another ISA Plan Manager that offers access to multiple Fund Managers (Hargreaves Lansdown, AJ Bell, Cofunds, Fidelity Fund Supermarket, etc.) which are called Platforms.
In reality these days most people use Platforms for their ISA Plan Management and as such have no need to ever switch ISA Plan Manager/Platform.
There remain some specialist Investment Managers who run their own portfolios and as such are not available on these Platforms, but these offer their own ISA Plan Management (for free, rather than you paying a platform for this). People who use these Investment Managers usually do so because they want their investment strategies and so are not concerned about a range of funds or equities, but having the ability to change ISA Plan Manager each year (and transfer whenever you like) gives greater flexibility.
Cheers
You can only have one stocks and shares (or cash, for that matter) ISA in any given tax year.
The ISA itself is only a tax administration function (know as a 'wrapper') provided by an HMRC approved ISA Plan Manager.
Within your ISA you can chose as many funds (or direct equities) as you want from those made available by your ISA Plan Manager
These funds are usually always provided and run by completely separate Fund Managers who have no other connection to your ISA Plan Manager.
To this extent there is no requirement to hold more than one ISA in any given tax year, nor is there any conceivable benefit in doing so (if you could).
Only if the ISA Plan Manager IS the Fund Manager are you limited to that Fund Manager's funds, but again they will have many.
If you feel restricted by the funds available to you in this instance you can TRANSFER your ISA to another ISA Plan Manager that offers access to multiple Fund Managers (Hargreaves Lansdown, AJ Bell, Cofunds, Fidelity Fund Supermarket, etc.) which are called Platforms.
In reality these days most people use Platforms for their ISA Plan Management and as such have no need to ever switch ISA Plan Manager/Platform.
There remain some specialist Investment Managers who run their own portfolios and as such are not available on these Platforms, but these offer their own ISA Plan Management (for free, rather than you paying a platform for this). People who use these Investment Managers usually do so because they want their investment strategies and so are not concerned about a range of funds or equities, but having the ability to change ISA Plan Manager each year (and transfer whenever you like) gives greater flexibility.
Cheers
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