Common questions that we very often get asked is can you have more than one stocks and shares ISA? How many stocks and shares ISAs can you have? & Can you pay into more than one stocks and shares ISA in a single tax year?
We’ve taken an example of a one of these questions and provided our response to clarify this question once and for all.
A user asked:
1) I am using my stocks ISA with MoneyFarm. Can I use some other broker to invest in stocks using the remaining ISA limit?
1. No, You can’t pay in to two separate ISA accounts in the same year. But you can set up a different one when the new financial year starts.
The current financial year is FY 20/21. It began on 6th April 2020 and ends on 5th April 2021.
FY 21/22 begins on 6th April 2021 and ends on 5th April 2022.
2. PLUS 500 don’t offer ISA accounts – but you can compare other stocks and shares ISA accounts here.
3. Yes, you can have more than one stocks and shares ISA account open and with funds deposited, but you are only able to pay into one in each financial year.
You have maximum ISA allowance of £20,000 which can be split as you like between different ISA types as you see fit but you must only ever pay into one of each type of ISA in a financial year.
- – You could open a new investment ISA now for the FY 20/21 and pay in £10,000.
- – You could also open a new cash ISA for the FY 20/21 and pay in £10,000.
You can also split your balance between up to three ISAs in a single financial year, provided you don’t exceed the maximum £20,000 allowance. So,
- – You could also open a innovative finance ISA (sometimes known as peer to peer ISAs or p2p ISAs) for the FY 20/21 and pay in £10,000.
- – You could also open a new cash ISA for the FY 20/21 and pay in £3,000.
- – You could open a new investment ISA now for the FY 20/21 and pay in £7,000.
You could choose to pay into a Lifetime ISA, but the maximum deposit available in a single financial year for these accounts is £4,000 and these accounts count as either a stocks and shares ISA or a cash ISA depending upon the type of account you choose.
4) What can I do with old ISAs form previous financial years?
If you have an old ISA accounts still open from previous years, either stocks and shares, peer to peer or cash ISA accounts, but have not paid into since the start of the new tax year you can choose to;
- – leave them open and open an new one with a different provider (the interest you earn may be lower than when you first opened the account, especially in the case of cash ISAs).
- – open a new account and arrange for the old ISA balance to be transferred to the new account.
- – begin paying into again (if your provider allows this)
Transfers made from old ISA accounts do not count towards you annual ISA allowance so are a good way to consolidate your ISA accounts if you want all of your investments in one place.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.