Please check my thinking - Multiple ISAs
Discussion
I thought I understood this, but I've read a couple of things that are making me question my understanding.
I heard in the budget that the new ISA rules are that in 2024/25 tax year, you can open multiple Cash ISAs and S&S ISAs, as long as you don't exceed the total £20k deposit limit.
In late April 2024 I opened a Vanguard S&S ISA and a Trading 212 S&S ISA. I've so far transferred a previous ISA into Vanguard and put £3k of new money into Trading 212.
I'm allowed to do this, right?
I ask because I was about to transfer my Natwest Cash ISA into a new Cash ISA and a warning popped up in the Natwest app saying that you can only have ONE Cash ISA in each tax year. I then read an article saying that only a few ISA providers have had time to update their systems to allow people to have multiple ISAs. I didn't check if either of my new providers allow multiple ISAs, I just went to each website and set up a new account.
I'm confused. Have I broken any rules transferring into a new Vanguard ISA and depositing into a new Trading 212 ISA in this tax year?
I heard in the budget that the new ISA rules are that in 2024/25 tax year, you can open multiple Cash ISAs and S&S ISAs, as long as you don't exceed the total £20k deposit limit.
In late April 2024 I opened a Vanguard S&S ISA and a Trading 212 S&S ISA. I've so far transferred a previous ISA into Vanguard and put £3k of new money into Trading 212.
I'm allowed to do this, right?
I ask because I was about to transfer my Natwest Cash ISA into a new Cash ISA and a warning popped up in the Natwest app saying that you can only have ONE Cash ISA in each tax year. I then read an article saying that only a few ISA providers have had time to update their systems to allow people to have multiple ISAs. I didn't check if either of my new providers allow multiple ISAs, I just went to each website and set up a new account.
I'm confused. Have I broken any rules transferring into a new Vanguard ISA and depositing into a new Trading 212 ISA in this tax year?
I think this has been covered before and I recall the gist was the government pulled this out their arse quite late so providers haven't all had time to put into place, therefore some can offer more than one, others not i.e. optional. I'm sure someone closer to the subject matter experts will arrive shortly.
Wonderman said:
I think this has been covered before and I recall the gist was the government pulled this out their arse quite late so providers haven't all had time to put into place, therefore some can offer more than one, others not i.e. optional. I'm sure someone closer to the subject matter experts will arrive shortly.
Wouldn't the issue be with any single provider hosting 2 or more ISAs of the same type? i.e. getting the Natwest app to show Cash ISA #1, Cash ISA #2, etc.If I just go to 2 separate providers and open an ISA with both of them, they wouldn't know how many other ISAs I have with other providers? As long as the tax rules allow multiple ISAs and that I can physically open 2 with different providers, I'm in the clear, right?
Edited by FreeLitres on Thursday 16th May 18:34
The way it worked in the past is that you could only subscribe to one of each type e.g. cash and S&S
e.g. I have S&S ISAs with two providers and also a LISA. Previously I could subscribe £4k in the LISA and then anything up to the remaining £16k in either one - not both - of the S&S.
The way I understand it since April is that you can now divide the subscription between any number of ISAs providing the sum of all subscriptions is no more than £20k. i.e. in my example I could put £4k in the LISA, £4k in each of the S&S ISAs and also £4k in each of two separate Cash ISAs.
Transfers between ISAs don't count towards the allowance as long as they are proper transfers organised as such with the provider i.e. you can't do it by withdrawing to a current account first, that would count as a new subscription.
Could be talking out of my arse though!
e.g. I have S&S ISAs with two providers and also a LISA. Previously I could subscribe £4k in the LISA and then anything up to the remaining £16k in either one - not both - of the S&S.
The way I understand it since April is that you can now divide the subscription between any number of ISAs providing the sum of all subscriptions is no more than £20k. i.e. in my example I could put £4k in the LISA, £4k in each of the S&S ISAs and also £4k in each of two separate Cash ISAs.
Transfers between ISAs don't count towards the allowance as long as they are proper transfers organised as such with the provider i.e. you can't do it by withdrawing to a current account first, that would count as a new subscription.
Could be talking out of my arse though!
Edited by theboss on Thursday 16th May 18:43
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