ISA Question - Opening multi S&S ISA's

Hey All

I have a question that I seem to keep getting mixed answers on and I hope you can help me out with.

Regarding UK Stocks and shares ISA’s

Question:
If I have a stocks and shares ISA, which I have opened and funded this year fully with the current years max allowance (£20,000), can I open another stocks and shares ISA this year and fund it only with previous years subscriptions (i.e an ISA Transfer)?

So, in a nutshell, to sum up my position right now: im mid way through transferring a hefty amount to trading212 to top up my £20,000 currently invested this year. Ideally I would like to stay below the £85,000 FCA protection, and wish to open another stocks and shares ISA to spread out my money.

Any help folks? :slight_smile: TY

I think you are saying you have a 2018-19 ISA with another provider. You have a new 2019-20 ISA with Trading 212 which you have already funded with £20k. Yes, you can transfer-in to the Trading 212 ISA all or a portion of the first ISA, as cash after selling investments.

Providers do not segregate ISAs by tax year. Your ISA with the first provider may have been funded in 2018-19, but it is now just known as ISA savings, with no particular tax year label permanently attached to it. You will have only one Trading 212 ISA. It can receive up to £20k of new cash in each tax year, and unlimited cash as trasfers-in from other ISAs.

You can have many ISAs in existence but can only put new money in one each tax year. There is no upper or lower limit on the existing money that can be transferred from one existing ISA to another existing ISA.

1 Like

Cheers @Richard.W

I have a Cash ISA with a bank.
I have opened a new Trading212 S&S ISA this tax year and funded it with my allowance.
But i’d like to open another S&S ISA this tax year, but fund it with my old years money saved in my cash ISA.

I kept hearing everywhere you can only open one type of ISA per tax year. So I was bummed to think i’d have to wait another year just to open another S&S ISA even though I just wanted to transfer my old past years savings across.

Cheers for taking the time.
I think your right, as long as i’m not putting the current years allowance in multiple S&S ISA’s im fine. So I think creating as many S&S ISA’s is fine in a tax year, as long as it’s old money that is to be transferred.

You can transfer in the money from your old cash ISA to your Trading 212 S&S ISA. This does not count against your 2019-20 ISA allowance.

@Richard.W

Yea, I have a request going through right now.
I just don’t want to go above the £85,000 FCA Limit. Hence the need for multiple S&S ISA’s.

Personally I would not worry about staying under the £85,000. Your shares are held separately from Trading 212. If they went bust you would still own your shares. The £85,000 is a protection that is more relevant to bank deposits and cash ISAs, and perhaps the cash in your Trading 212 account. Do you plan to let £85k sit in your Trading 212 account uninvested? If someone has £1m in stocks and shares ISA savings I doubt she bothers to divide it up amongst 12 different platforms.

Qutie honestly, yes. I won’t be putting all of that cash to work right away, but as the portfolio grows to say £100k+ I can see myself putting a heft amount to the side for “down-days”. I’m not trying to time the markets, but equally not trying to lose it all overnight :slight_smile:

I agree that splitting it up only becomes useful at a certain range, £1m+ it’s more head ache than use.

It’s just been a question that’s floated in my head for a while and I heard many different answers lol.