Silly question...

[fid]

If I have less than £10,200 in a stocks and shares ISA in bank A, can I put the remainder of the £10,200 into a stocks and shares ISA with bank B? TIA

[DonkeyApple]

fid said:

If I have less than £10,200 in a stocks and shares ISA in bank A, can I put the remainder of the £10,200 into a stocks and shares ISA with bank B? TIA

I.e £5,100 each in two different ISAs?

Probably not as one provider is then unable to monitor contributions of the other provider so both would be at risk of default and therefor penalties.

[jfbrin]

Not quite. I know for a fact that if you have a cash ISA with Bank "A" and wish to open a stocks & shares ISA for the balance with Bank "B", that's fine.

But having reread the op, where the existing ISA is stocks & shares, I would still contend that it should be possible to do.

Edited by jfbrin on Thursday 31st March 21:51

[DonkeyApple]

Maybe. Stock and cash ISAs are two separate schedules and so there is no issue at all. Each provider is singularly responsible for the correct management of each separate structure.

However, the moment you split one type, within the same year, between two providers neither can legally ensure that parameters are not breached.

As such, even if it is possible I am not aware of a legitimate provider who would find it commercially acceptable to accept this ver considerable risk.

[jfbrin]

Yes Donkey Apple is correct.
Checked this morning and you can only subscribe to one stocks & shares ISA with a single manager in any one year.
Howvere, you can open a cash ISA with A and one manager and a stocks and shares ISA with manager B in the same year.

Hope this helps clarify the answer.

[cannedheat]

fid said:

If I have less than £10,200 in a stocks and shares ISA in bank A, can I put the remainder of the £10,200 into a stocks and shares ISA with bank B? TIA

Yes you can do this. It's not technically 'correct' but you would get away with it as long as the total subbed was under the ISA limit.

Each institution would report to HMRC that you hold a 10/11 ISA but as long as you haven't exceeded the overall £10200 limit (although the limit is reasonly lax) you'll be OK. HMRC are quiet lenient on this sort of thing.

[NorthernBoy]

cannedheat said:

Yes you can do this. It's not technically 'correct' but you would get away with it as long as the total subbed was under the ISA limit.

Each institution would report to HMRC that you hold a 10/11 ISA but as long as you haven't exceeded the overall £10200 limit (although the limit is reasonly lax) you'll be OK. HMRC are quiet lenient on this sort of thing.

What do you mean by saying the limit is lax, do they not often check to see if you've opened multiple accounts?

[fid]

Oops, sorry guys, I found the answer not long after asking the question - whilst the contributions wouldn't exceed the limit, you have to declare you've not opened a stocks and shares ISA with another provider in the same year. Which is a shame, but rules is rules.

[cannedheat]

NorthernBoy said:

What do you mean by saying the limit is lax, do they not often check to see if you've opened multiple accounts?

You're technically only supposed to have one S&S ISA but if you have two and the combined subs are less than £10,200 (or current limit), HMRC won't really care. In the past they did, but their stance has changed.

With regards to the lax limits, HMRC dont usually send a 'notice of discovery' to void excess subs unless you've over-subbed by £500-£1000+ or consistently over-sub each year.

Submissions by ISA providers to HMRC are made on an annual basis and usually detail the amount subbed and your national insurance number. If you were to open one S&S ISA with your actual number, technically you could open and fully fund a second by using a temporary NI number, such as XX999999X....