Two ISAs in the same name?

[Pulse]

We had put some money (not sure how much) into our ISAs this year, but have shut both of them down in favour of internet ones with the same bank, as they've got better rates. But for some reason, we can put money into them - What would be the worst that could happen if we did put money into them now? (So we get it in before the new financial year)

[trickywoo]

Pulse said:

We had put some money (not sure how much) into our ISAs this year, but have shut both of them down in favour of internet ones with the same bank, as they've got better rates. But for some reason, we can put money into them - What would be the worst that could happen if we did put money into them now? (So we get it in before the new financial year)

You will be asked to declare that you haven't already exceeded your ISA allowance for this year when you put money in.

If you have and don't say, then effictively its tax fraud and the IR doesn't mess about.

[Gareth79]

The banks report back to HMRC - a relative accidentally put too much in and got a strongly worded letter from HMRC telling him off. I can't remember how it was sorted, I think they were allowed to leave it in.

[Dr_Gonzo]

You can have as many ISAs as you want but you can only subscribe to one (of each type - cash/shares) each tax year.

[tj2002]

You can contribute to two ISA's in the same year providing that one is a stocks and shares ISA and one is cash ISA. The limit for each is currently £5,100 into each or £10,200 if you are just paying into a stocks and shares ISA.

You cannot contribute to 2 of the same kind of ISA in the same tax year and whatever paperwork you have signed will state this. If this is the case the most recent ISA contributions will need to be returned and the ISA terminated. Not sure of the penalities if you continue doing it though.

[cannedheat]

Pulse said:

We had put some money (not sure how much) into our ISAs this year, but have shut both of them down in favour of internet ones with the same bank, as they've got better rates. But for some reason, we can put money into them - What would be the worst that could happen if we did put money into them now? (So we get it in before the new financial year)

If the total amount subbed exceeds £5100 by a large amount, say £500 or so, you might receive notification from HMRC in a year or so when they analyse your ISA manager's returns.

If you've oversubbed by only a little bit then you'll probably hear nothing at all as HMRC are fairly lenient with excess ISA subs of smaller amounts.

If the total amount subbed is less than £5100 then nothing to worry about. The fact that you've opened two ISAs of one type in a tax year doesn't matter 'that' much. I presume you withdrew from the first and re-subbed the monies rather than completing a transfer?