I’ve opened a S&S ISA a few days ago with another platform and had put 20pounds in cash in the account without investing them (and have since withdrawn them).
However after having done more research, I want to open a S&S ISA account with Trading 212 and do the trading on their platform.
Reading some of the posts, it seems we’re not allowed to contribute in any tax year in 2 different S&S ISA accounts - but I’m not sure if my 20GBP contribution when opening my first account counts since it was not invested?
Anyone can help clarify if I can still open an account with Trading 212 and invest my 20KGBP allowance with them?
No, from my understanding you must transfer your ISA from the first provider to Trading212 using the ISA transfer form.
So if I were you I’d put the £20 cash back in and follow the ISA transfer process, which takes a few weeks on average. That way, I believe you can then use your allowance as normal after a successful and official transfer.
took only about a week for me
Then you’re on the lower end of the scale.
Cash tends to be quicker to transfer so given Trading212 only accept cash no surprise it’s relatively quick.
As @Alpha correctly pointed out, in case you want to transfer your ISA from one broker to another it is necessary to use the ISA Transfer Form.
I just want to add that in case your previous broker offers Non-Flexible ISA, the £20 will be deducted from your yearly allowance even if you have not invested them in any shares.
Hey Michael, when opening the account I still get that I need to declare that: “I have not subscribed and will not subscribe to another stocks and shares ISA in the same tax year that I subscribe to this stocks and shares ISA”
Would the transferring of the ISA remedy that?
@BRKT Only a reflected deposit into the ISA account is counted as subscription. So, as long as you are not depositing funds to the Trading 212 ISA account, it will remain inactive. Once the transfer of current tax year is completed, you will be able to deposit up to the remaining ISA allowance.
Thanks Michael - I spoke to HMRC and they seem to have a different point of view. They clearly told me that since I already opened a S&S ISA with another provider in the current tax year, then I’m not allowed to open another one with Trading 212.
So in a sense unless I trade my yearly tax free allowance with the provider I have initially opened my account with, I would have lost my tax free allowance for this tax year.
@BRKT Just to clarify - you are not allowed to open more than one ISA account, however you are allowed to transfer your funds and tax free allowance to another broker.