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Cash ISA
Posted: March 7th, 2021, 12:19 pm
by richlist
Can I pay £5000 into an existing cash isa and then pay £15000 into a new cash isa in the same tax year ?
Re: Cash ISA
Posted: March 7th, 2021, 12:32 pm
by AleisterCrowley
No, I don't think you can put new money into more than one of each type in each tax year
https://www.gov.uk/individual-savings-accountsT
here are 4 types of ISA:
cash ISAs
stocks and shares ISAs
innovative finance ISAs
Lifetime ISAs
You can put money into one of each kind of ISA each tax year.
Re: Cash ISA
Posted: March 7th, 2021, 12:32 pm
by PinkDalek
richlist wrote:Can I pay £5000 into an existing cash isa and then pay £15000 into a new cash isa in the same tax year ?
You can but it would have to be voided when considering ISA Subscriptions:
https://www.westbrom.co.uk/faqs/savings/isas/general/can-i-fund-more-than-one-isa-in-a-tax-yearUnless, by any chance, an Additional Permitted Subscription is concerned:
https://www.hl.co.uk/investment-services/isa/additional-permitted-subscription-aps
Re: Cash ISA
Posted: March 7th, 2021, 1:58 pm
by mc2fool
richlist wrote:Can I pay £5000 into an existing cash isa and then pay £15000 into a new cash isa in the same tax year ?
No, but if you already have £15,000 or more in the existing cash ISA (from a previous tax year) you can
transfer £15K to a new one, and as that's "old" money it doesn't count against the current tax year's quota, and then pay £20,000 into the existing one, giving the same end effect. Not all cash ISA allow transfers though.
Re: Cash ISA
Posted: March 7th, 2021, 3:38 pm
by richlist
I have £79K in a Virgin ISA and wanted to add £5K in order to ensure it didn't exceed the £85K Gov' gaurantee.
But now I know I can only put money in one ISA I'll just open another somewhere else.
Thanks for the quick replies.
Re: Cash ISA
Posted: March 7th, 2021, 3:59 pm
by mc2fool
richlist wrote:I have £79K in a Virgin ISA and wanted to add £5K in order to ensure it didn't exceed the £85K Gov' gaurantee.
But now I know I can only put money in one ISA I'll just open another somewhere else.
Fine, so open a new one with a
transfer instruction to take £15K from the Virgin ISA and when that's done (which
should be within 15 days) then add £20K to the Virgin ISA.
Note, you
must give the transfer instruction to the new ISA for them to "pull" the £15K from the Virgin one in order for the £15K to maintain both its ISA and "old" money statuses. There'll be a form somewhere on the new ISAs site -- assuming they allow transfers in, some don't.
Re: Cash ISA
Posted: March 7th, 2021, 5:15 pm
by AleisterCrowley
Yes, as mentioned above you can fiddle about with ISA transfers to get the desired result.
I have paid in to a cash ISA (HTB) this tax year and have also opened two new cash ISAs with Paragon with transferred-in funds from Nationwide and NS&I. I haven't paid any new money into either a/c. Nobody has complained yet...
Re: Cash ISA
Posted: March 7th, 2021, 10:11 pm
by Avantegarde
richlist wrote:Can I pay £5000 into an existing cash isa and then pay £15000 into a new cash isa in the same tax year ?
Yes you can.
Re: Cash ISA
Posted: March 7th, 2021, 10:19 pm
by GrahamPlatt
I’d second what Avantegarde says there. The point being you can’t contribute more than £20k in total to “an ISA”, but how you split/distribute it is immaterial.
Re: Cash ISA
Posted: March 7th, 2021, 10:33 pm
by Gersemi
https://www.gov.uk/individual-savings-a ... -isas-work"There are 4 types of Individual Savings Accounts (ISA):
cash ISA
stocks and shares ISA
innovative finance ISA
Lifetime ISA
...
Every tax year you can put money into one of each kind of ISA. The tax year runs from 6 April to 5 April.
You can save up to £20,000 in one type of account or split the allowance across some or all of the other types."
You cannot put new money into two different cash ISA's in the same tax year. You can transfer money from old ISA to a new one and invest in a different new cash ISA in the same year.
Re: Cash ISA
Posted: March 7th, 2021, 11:05 pm
by AleisterCrowley
It's like déjà vu all over again...
Re: Cash ISA
Posted: March 8th, 2021, 12:05 am
by PinkDalek
GrahamPlatt wrote:I’d second what Avantegarde says there. The point being you can’t contribute more than £20k in total to “an ISA”, but how you split/distribute it is immaterial.
The question specifically talked of Cash ISAs (and none of the other types). Have you read all the replies to date and do you still agree?
As far as I’m aware you cannot subscribe to two Cash ISAs in the same tax year or, if you do, that would be in breach of the rules and would probably need repairing. Maybe Avantegarde was thinking of the latter. Impossible to tell though if the only words are “Yes you can” with neither rhyme no reason.
Happy to be proved wrong but with back up support from external sources a preference.
Edit: Here's another source from me:
https://www.sharesmagazine.co.uk/article/watch-out-avoid-these-10-isa-mistakes-nowSee item "
2 – Don’t pay into more than one of the same type of ISA in a year".
Re: Cash ISA
Posted: March 8th, 2021, 5:05 am
by GoSeigen
richlist wrote:Can I pay £5000 into an existing cash isa and then pay £15000 into a new cash isa in the same tax year ?
No you can't. When you subscribe to an ISA you sign a statement averring that you have not contributed to another ISA (of the same type) in that tax year. It's against the rules, probably for the sound reason that it is far easier to track the contributions if they are with a single provider.
GS
Re: Cash ISA
Posted: March 8th, 2021, 7:50 am
by GrahamPlatt
Looks like I have been labouring under a misapprehension. However, given how demonstrably easy it as to circumvent this rule (while keeping to the letter), I would refer you to Lord Sumption’s view.
Re: Cash ISA
Posted: March 8th, 2021, 8:49 am
by swill453
GrahamPlatt wrote:Looks like I have been labouring under a misapprehension. However, given how demonstrably easy it as to circumvent this rule (while keeping to the letter), I would refer you to Lord Sumption’s view.
Since you have to give a National Insurance number to open an ISA, transgressions of the rules are trivially easy to trace by computer.
However from what I've heard the typical response is that you get a warning and told "don't do it again".
Scott.
Re: Cash ISA
Posted: March 8th, 2021, 9:11 am
by GrahamPlatt
swill453 wrote:GrahamPlatt wrote:Looks like I have been labouring under a misapprehension. However, given how demonstrably easy it as to circumvent this rule (while keeping to the letter), I would refer you to Lord Sumption’s view.
Since you have to give a National Insurance number to open an ISA, transgressions of the rules are trivially easy to trace by computer.
However from what I've heard the typical response is that you get a warning and told "don't do it again".
Scott.
Yes, but the OP is proposing adding funds to an existing ISA, already “declared” in previous years, and funding a new one whilst staying within his overall allowance. I accept (now) that that seems to be outwith “the rules”, but I don’t find it morally wrong.
Re: Cash ISA
Posted: March 8th, 2021, 9:27 am
by swill453
GrahamPlatt wrote:Yes, but the OP is proposing adding funds to an existing ISA, already “declared” in previous years, and funding a new one whilst staying within his overall allowance.
Yes I know. And all such transactions are submitted to HMRC, so as I said will be trivially easy to cross-reference by NI number.
that that seems to be outwith “the rules”, but I don’t find it morally wrong.
Since when did morals come into it
Scott.
Re: Cash ISA
Posted: March 8th, 2021, 9:49 am
by GrahamPlatt
GoSeigen wrote:It’s against the rules, probably for the sound reason that it is far easier to track the contributions if they are with a single provider.
GS
swill453 wrote:Yes I know. And all such transactions are submitted to HMRC, so as I said will be trivially easy to cross-reference by NI number.
Scott
Re: Cash ISA
Posted: March 8th, 2021, 11:35 am
by didds
swill453 wrote:However from what I've heard the typical response is that you get a warning and told "don't do it again".
Scott.
yeah. at least thats what happened to me about 20 or so years ago when I inadvertently did it (brainf4rt moment).
The 2nd ISA got opened absolutely fine then I got a letter saying "you shoudnt have done that. Please remember for future. But for now weve converted it to another non ISA fund." And that was it.
Re: Cash ISA
Posted: March 8th, 2021, 12:14 pm
by richlist
It's good to know the rules but £20K @ say 0.5% is only £100 a year and not an amount worth getting very excited about.
But I now know what I can & can't do.