Question about multiple ISAs

[Salgar]

I can't seem to find a definitive answer on this, apologies if I've missed something.

I haven't used any of my ISA allowance this year yet.

I have a HL Stocks & Shares ISA that I opened a few years ago.

If I opened a fiveraday.co.uk ISA. Would I be able to put £5000 in that ISA, and £5000 in my HL ISA (made up numbers below the total ISA maximum)?

Is that allowed, or am I only allowed to contribute to one ISA, even though the sum is below the ISA limit?

[Ozzie Osmond]

See this link,

http://www.moneysavingexpert.com/savings/ISA-guide...

[Salgar]

Just read that whole page, I don't believe it answers my question, it speaks about splitting between a cash and a stocks and shares isa as much as you want, and about transferring between Cash ISAs, but it doesn't say anything about investing in multiple stocks & shares ISAs in the same year.

[Ozzie Osmond]

My understanding is that you can only have ONE stocks and shares ISA per year and ONE cash ISA per year.
i.e. a maximum of two ISAs, one of each type, with the annual limit of £15,240 applying in aggregate.

Most providers offer both S&S and cash ISAs so it's usually all doable in one place..

[walm]

Ozzie Osmond said:

My understanding is that you can only have ONE stocks and shares ISA per year and ONE cash ISA per year.
i.e. a maximum of two ISAs, one of each type, with the annual limit of £15,240 applying in aggregate.

Most providers offer both S&S and cash ISAs so it's usually all doable in one place..

That was my understanding too.
http://www.telegraph.co.uk/finance/personalfinance...
Article said:
Can I take out as many new Isas as I like?
No, HMRC has confirmed that you will still be limited to two – one cash, one stocks and shares – in any one tax year.

[Ginge R]

Salgar,

Small world, I didn't know you were a PHer. I picked up your email via the site and answered you an hour of two ago. I put this in my reply; others may find it useful though, so I'll post the link here. Para 3.14 (specifically) refers.

https://www.gov.uk/government/uploads/system/uploa...

If I can be of any more help, just shout out.

' best,

Al.

[Ozzie Osmond]

Ah yes, very clear,

"In each tax year, ISA investors may subscribe to
 * one cash ISA and
 * one stocks and shares ISA
They may not subscribe to two (or more) cash ISAs, or two (or more) stocks and shares ISAs in the same tax year."

[JmeSwaz]

As of April, all interest is tax free upto £1000 of interest for basic rate tax payers, then £500 to higher rate. Does this not kill the need to a cash ISA?

[Tiggsy]

Yes - Unless you have/want to build up a cash ISA of such size that it yields £1000+ pa in interest!!!

[Ginge R]

JmeSwaz said:

As of April, all interest is tax free upto £1000 of interest for basic rate tax payers, then £500 to higher rate. Does this not kill the need to a cash ISA?

Yes, although if you think long term, the benefit to the ISA wrapper (regardless of cash/equity) is that once it's in the wrapper, you've planted your flag in the sand.

That's helpful later, if you ever wanted to shift a few years worth of ISA cash subscriptions into equity ones because the government has rescinded the £1000 annual savings allowance. The government of course, could always consign to history, the ISA wrapper too!