s&s isa help needed

[timberman]

Bit of help needed as I'm not sure if I've messed up or not.

Basically I have been looking at my current S&S Isa lately and decided considering the below average performance and above average costs involved that I would rather open a new S&S Isa with a different provider and transfer my current Isa over to them.

To this end I've opened an account with the new provider, set up a direct debit to start paying in from january and cancelled the direct debit on my existing account.

I also made a small investment into the new Isa of £100 just so there's something showing till the transfer is made.

Now, while I've been reading the documents it has come to my attention that paying into 2 of the same Isa's in one tax year is not allowed,

I was under the impression that I couldn't pay into 2 of the same Isa's at the same time, but that opening a new isa was ok as long as I stopped paying into the existing Isa.

Am I correct or have I just cocked up and will now have the hmrc chasing after me.

[Orchid1]

If you're transferring the old one into the new one then you'll be fine.

[timberman]

thanks,

I actually rang the hmrc,
their advice was to not do anything (i.e don't transfer or pay any more money into either account) and I would probably receive a letter at the beginning of the new tax year which doesn't seem much like advice to me.

[Greshamst]

You cannot pay new money into more than one of the same type of ISA in the same tax year.

So if you have an existing S&S ISA that has been paid into this tax year, you’re not allowed to put new money into a new S&S ISA in this tax year

[JulianPH]

I would contact your new ISA provider and let them know your mistake.

They will be able to close and void your account and open a new one for when you make the transfer.

You will then be able to make new payments into this ISA.

[timberman]

JulianPH said:

I would contact your new ISA provider and let them know your mistake.

They will be able to close and void your account and open a new one for when you make the transfer.

You will then be able to make new payments into this ISA.

thanks Julian
this is exactly what I have done in the end
I did get an offer from the previous provider to reimburse me of all this years contributions and then transfer the remainder over to my new provider so I would only have contributed to one, but this seemed like a bit of a faff so I've just cancelled the new one and will start again in april

[JulianPH]

timberman said:

JulianPH said:

I would contact your new ISA provider and let them know your mistake.

They will be able to close and void your account and open a new one for when you make the transfer.

You will then be able to make new payments into this ISA.

thanks Julian
this is exactly what I have done in the end
I did get an offer from the previous provider to reimburse me of all this years contributions and then transfer the remainder over to my new provider so I would only have contributed to one, but this seemed like a bit of a faff so I've just cancelled the new one and will start again in april

Hi Pete

Happy to have been of some help. You don't have to wait until April though, as soon as you transfer this becomes your ISA for the year (so you can add contributions straight away).

The rule is not contributing to more than one S&S (or cash) ISAs in the same tax year. Once you have transferred then you still only have the one ISA.

I hope that make sense, just shout if not!

[timberman]

JulianPH said:

Hi Pete

Happy to have been of some help. You don't have to wait until April though, as soon as you transfer this becomes your ISA for the year (so you can add contributions straight away).

The rule is not contributing to more than one S&S (or cash) ISAs in the same tax year. Once you have transferred then you still only have the one ISA.

I hope that make sense, just shout if not!

Hi julian

My original intention was to open an account with the new provider then transfer my old Isa over and carry on paying in from january.

are you saying this would be allowed
and was my only mistake paying into the new isa before the transfer has happened.

If so I may get in touch with the new provider and arrange the transfer now rather than waiting till the new tax year

tia
Pete

[JulianPH]

timberman said:

JulianPH said:

Hi Pete

Happy to have been of some help. You don't have to wait until April though, as soon as you transfer this becomes your ISA for the year (so you can add contributions straight away).

The rule is not contributing to more than one S&S (or cash) ISAs in the same tax year. Once you have transferred then you still only have the one ISA.

I hope that make sense, just shout if not!

Hi julian

My original intention was to open an account with the new provider then transfer my old Isa over and carry on paying in from january.

are you saying this would be allowed
and was my only mistake paying into the new isa before the transfer has happened.

If so I may get in touch with the new provider and arrange the transfer now rather than waiting till the new tax year

tia
Pete

Hi Pete

Exactly right at every level.

Just give me a shout if there is anything else.