I have been paying into two Stocks and Shares ISAs the past few months - Community Forum (2024)

FAQs

What happens if I pay into two stocks and shares in ISAs? ›

As of 6 April, investors are allowed to open and pay into multiple ISAs of the same type in the same tax year (except for lifetime ISAs). This means you could contribute to two or more stocks and shares ISAs and/or two or more cash ISAs. Previously, it was a case of one ISA of each type, each tax year¹.

Don't try to sort it yourself. Keep the account open and don't withdraw your money. Contact HMRC's ISA helpline to explain what's happened – 0300 200 3300. HMRC will work out which ISA needs to be void and tell you what to do next.

Since the start of the 2024/25 tax year, there is no limit on the number of ISAs that you can open with different providers (apart from lifetime ISAs). This means you could have a Cash ISA with us, and another with a different bank or building society.

Any increase in value of the investments in your stocks and shares ISA is free of Capital Gains Tax. Most income from your stocks and shares ISA is tax-free. It's worth shopping around to make sure you find an ISA that suits you. Compare any charges for the ISA wrapper and the range of investments you can put inside.

A fund might be a dud, a fund manager might leave, or you might not be willing to take as many risks as you once did. If you don't review your portfolio regularly, you could end up with a stocks & shares ISA losing money. Don't panic. Investments can go down as well as up.

If you do exceed your ISA allowance, you can contact HMRC to let them know, or if you haven't realised you've done this, they will get in touch with you after the end of the tax year to let you know what you need to do to correct your mistakes.

In situations where you have saved in excess of this sum in your ISAs in the tax year, you will need to discuss with your ISA providers, the removal of the excess from your ISA, incuding any interest the excess generated, and return it to you. The excess interest is taxable and should be declared. Thank you.

Junior ISA Loophole

Before April 6, 2024, 16 and 17-year-olds could save up to £29,000 a year in ISAs by using both the Junior ISA and adult cash ISA allowances. But now, only those 18 and older can open cash ISAs. This means 16-year-olds can't access adult cash ISAs anymore, closing that loophole.

Under the strict statutory approach, breaches of the ISA regulations can lead to voiding of the ISA . If an ISA is voided: We will recover from you any relief you gave to the investor. The investor may have to complete a Self Assessment tax return to declare income and gains in excess of the personal savings allowance.

You can hold as many stocks and shares ISAs as you like across different providers.

How many ISAs can I have in 2024? ›

As of 6 April 2024, you can now open more than 1 cash ISA each year. the deposit limit is still 20k over how may you have in each tax year.

The minimum age is changing to open a cash ISA

Depending on your provider, this means that if you're 16 or 17 on 6 April 2024, you can still open and subscribe to one type of ISA each tax year. Also, it's important to remember that anyone under 18 years can still get the same tax-free benefits through a Junior ISA.

You can only have one cash ISA in each tax year. If both were opened in the same tax year, you will need to contact the second ISA provider for them to close it down. If you opened a second cash ISA, but in a different tax year to the first, then that is fine.

You can even pay into multiple Cash, Stocks and shares or Innovative Finance ISAs in the same tax year, if you stay within the overall ISA allowance. There's still restrictions on multiple Lifetime ISAs or Junior ISAs.

All income, interest and capital gains on your ISA do not need to be declared on your tax return.

The ISA rules have changed as of 6 April 2024. You can now have - and contribute - to as many ISAs as you want (except for Lifetime ISAs and Junior ISAs). Provided you don't contribute more than your £20,000 ISA allowance across them all. This means you can open more than one of each ISA type.

Splitting your ISA allowance

You can divide your ISA allowance across the four different types of ISAS – Cash, Stocks and Shares, Innovative Finance or Lifetime. Although the maximum amount you can put into a Lifetime ISA is £4,000 each tax year.

You can take money out of most ISAs whenever you want, without affecting the tax benefits. However, some types of ISAs have specific rules and costs around withdrawing, like the Lifetime ISA. Certain providers may even charge you to make a withdrawal – so always check the terms before you sign up.