UK : Opening multiple stocks and shares ISA accounts per year ?

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Topic Author
bluejeansman
Posts: 197
Joined: Sun Oct 19, 2008 6:50 pm

UK : Opening multiple stocks and shares ISA accounts per year ?

Post by bluejeansman »

Hi All !

I am still not clear on how many stocks and shares ISA one can open in a given year. Is it at most one ?

Consider 2 possibilities :
1) I wish to invest £20,000 in Stocks n shares ISA this year. Can I open a Stocks n shares ISA with 2 different providers and split the £20,000 between them ? I dont think so.

2) Suppose I contributed £20,000 the previous year on a Stocks n shares ISA with provider A. Suppose that this current tax year I have already contributed £20,000 Stocks n shares ISA into provider B. Now at some point this current tax year, I find a better provider (provider C) , so I would like to transfer some of the funds (from either provider A or provider B) into Provider C. Am I allowed to do this, or do I need to wait till next financial year to even open an empty Stocks n shares ISA account with Provider C ?

I called up Alliance Trust and they didnt know the answer to (2) so they searched google while I was on the phone with them and said (2) is not allowed.
Any good Government links on this ?

I posted this on monevator on an old article comment section. Didnt get any reply (since it is an old article) hence trying my luck here. Not trying to be a troll. Sorry.

thanks a bunch.
Topic Author
bluejeansman
Posts: 197
Joined: Sun Oct 19, 2008 6:50 pm

Re: UK : Opening multiple stocks and shares ISA accounts per year ?

Post by bluejeansman »

Can anyone help me out here please ? Apologies for writing in a verbose style. In brief : Can I open a stocks and shares ISA with 2 different providers in a given tax year (but make the £20,000 contribution to only one of them) ?

I thought if the intent is NOT to add NEW money But only to TRANSFER old money, then you can open as many stocks and shares isa per year ( with more than 1 provider)

Consider this scenario : Tax year starts, you opened new stocks and shares ISA wth provider X, contributed £20,000. Few months pass, and you dont like the service and want to move to a new provider Y, transfer some of your old money from previous years into Y, and perhaps also empty out the £20,000 from X into Y. Can you not do this ? Do you need to wait till new tax year to change your mind ?

Monevator replied saying it is not allowed, but they were just trying to be helpful and saying it from memory. I am unable to find any proper government links on this.

Perhaps I need an IFA to answer this. If I get paid advice, happy to share here, but if some of you knowledgeable folks know, appreciate a response.

Thanks
Topic Author
bluejeansman
Posts: 197
Joined: Sun Oct 19, 2008 6:50 pm

Re: UK : Opening multiple stocks and shares ISA accounts per year ?

Post by bluejeansman »

Just called up Alliance Trust and spoke to a more knowledgeable customer service rep. She confirmed that I can indeed open as many stocks and shares ISA as I like, but can contribute the £20,000 to only one per year. But if I want to transfer ISA from another provider, it is fine to do so.

So I can open a new stocks ISA this year, contribute 20,000 - and then open another brand new stocks ISA with another provider, complete a "transfer form" to move my old money from previous years into this brand new one.

I cant find a government site link tho'.

Thanks for listening. Hope it is useful to someone else out there.
Topic Author
bluejeansman
Posts: 197
Joined: Sun Oct 19, 2008 6:50 pm

Re: UK : Opening multiple stocks and shares ISA accounts per year ?

Post by bluejeansman »

Called up Charles Stanley Direct and they also confirmed the same : that I can open a stocks n shares ISA with them for this current tax year with the intent of ** transferring a previous year's ISA ** even tho I might have opened a stocks n shares ISA with another provider for this same current tax year and already contributed the £20,000 into it.

I am also lucky to work for a company where we have a pensions adviser, and he also confirmed the same.

I am not the brightest guy around and easily confused, so it is good to get this reassurance from 2 different customer service rep and my pensions adviser.

Only thing that still bothers me is : I cant find any authoritative government links (i.e from the folks that make the rules) and newspaper articles are quite vague on this specific point.

Hope this is useful to others.

thanks.
TedSwippet
Posts: 3161
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: UK : Opening multiple stocks and shares ISA accounts per year ?

Post by TedSwippet »

bluejeansman wrote: Thu Mar 21, 2019 11:51 amI cant find a government site link tho'.
In searching, did you run across HMRC's Guidance Notes for ISA Managers?

It's a large document. The answer to your question surely must be in it somewhere. :-)
Topic Author
bluejeansman
Posts: 197
Joined: Sun Oct 19, 2008 6:50 pm

Re: UK : Opening multiple stocks and shares ISA accounts per year ?

Post by bluejeansman »

TedSwippet,

thanks a lot. Looks like Chapter 11 in it has the necessary details ...

Transferring an ISA

11.1 Investors have the right to transfer their ISAs whenever they want and this right must be included in the manager’s ISA terms and conditions (see paragraph 4.30). They do this by making a Transfer Application to the new manager (paragraph 11.15a); they cannot transfer an ISA by closing it and paying the proceeds into a new ISA with the new ISA manager. A Transfer Application can be made by someone holding a mandate from the investor (see paragraph 5.29 and 11.15a).

[ ... ]

Transfer Applications

11.15a Unless the ISA is being transferred into an existing ISA with the new ISA manager, investors must make a Transfer Application to the new ISA manager when requesting a transfer. This can be achieved by asking the investor to complete:

(a) a Transfer Authority Form (which is not a requirement of the ISA regulations), which the new ISA manager forwards to the old ISA manager and authorises him to transfer the ISA (or part of it) to the new ISA manager, AND
(b) a ISA application form or a transfer instruction

Thanks again. On another note, this is exactly the document I wanted to read to get a sound sleep :)
ukinvestor21
Posts: 3
Joined: Sun Jun 23, 2019 12:21 pm

Re: UK : Opening multiple stocks and shares ISA accounts per year ?

Post by ukinvestor21 »

Hello there. This definitely can be a confusing area.

Essentially, you can contribute up to £20,000 into ISA products in the current tax year. The £20,000 limit covers money put into both a stocks and shares ISA and a Cash ISA.

If you already have a stocks and shares ISA you are allowed to transfer it between different providers. Also, if you have a cash ISA from the last tax year you can transfer the balance into a stocks and shares ISA, without impacting your allowance for the current tax year.

You mind find this guide to using a stocks and shares ISA helpful.

Best wishes
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