Can anyone clarify Stocks and shares ISA rules??

20th Feb by N0vice1Nvest0r

9 comments 373 reads

So I have a stocks and shares ISA that ive regularly contributed to for about 18 months, I intend to open a Vanguard target retirement fund. Yes I appreciate this is a long term fund, but I don't know if I can invest in both continually, or if it has to be either or.

I believe as long as I don't exceed the £20k a year in total between the two then it would be ok.

Could anyone confirm or deny this as I'm a little confused.

Thanks in advance.

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N0vice1Nvest0r

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Absolute novice investor that is trying to slowly grow wealth. Reading as much as I can, to learn from those who know, those who have done it and those willing to teach... more »

9 comments

RabidDog

20th Feb

Yes 20k per annum limit….use it how you like in approved isa wrappers

jjis

20th Feb

You can put £20k each tax year into an ISA. This is completely separate from a Pension account which will have its own limits which are quite complex, but for most people is I think currently £60k per tax year. See the following link if you have the inclination to read more: Pension Tax Limits I hope this helps.

Dragon

20th Feb

I believe that you can only open one ISA with one provider in anyone tax year. If you opened an ISA 18 months ago and open a new one this tax year, you have to put all new money up to £20,000 into the new ISA. You can then move the money to another existing ISA and vice versa.

Correct me if I'm wrong, but that is my understanding, although I have heard of people opening multiple ISA's in the same tax year, I think this is against the rules.

Tree

20th Feb

My understanding is that you can only pay into one of each type of ISA in each tax year, and that total contributions per tax year must be £20k or less. You can have multiple ISAs of the same type if opened in different years as long as you don't contribute to more than one of the same type in a single year. For instance, if I have an existing stocks and shares ISA which I haven't contributed to in the current tax year, then I could open a new Stocks and Shares ISA, and a cash ISA, and contribute to both (up to the £20k total) but I then wouldn't be able to contribute to the original existing Stocks and Shares ISA from a previous tax year.

Chris Brown

20th Feb

"Every tax year you can put money into one of each kind of ISA" as per HMRC here.

So up to now you should only be paying into one Stocks & Shares ISA each tax year, one Cash ISA each tax year, etc. You could put £10k onto the Cash ISA and £10k into the S&S ISA, but not £10k each into two different S&S ISAs.

A bit silly really and the Autumn Statement announced a relaxation of those rules from 6 April 2024 onwards. Link here has an explanation.

Tree

20th Feb

N.B. This changes from the next tax year, and the rules are then liberalized to allow contributions to multiple ISAs of the same type up to the same total (£20k). This was part of the autumn statement.

N0vice1Nvest0r

23rd Feb

Ive had some clarity from Vanguard via email.....

"Right now you wouldn't be able to open a Stocks and Shares ISA with Vanguard if you have one else where and you've contributed in this tax year . However, this all changes from the 6th April as the Revenue are allowing multiple ISA'S in the same tax year as long as you don't go over the 20k limit as a whole, meaning from the 6th of April you can open an ISA with us and contribute whilst still contributing to your existing ISA as well. Hope that helps and clarifies matters."

kuronagi

23rd Feb

noviceinvestor

Why don't you just buy the Vanguard fund within your existing ISA?

As far as I know, you can put £20k into ISA each year. You could put £1K into 20 different ISAs is you wanted to.

Kuronagi (retired investment professional, CFA, etc etc)

Mike Ingham

23rd Feb

You can have a cash isa with one provider and a stocks and shares with another but you can't have 2 of the same type of ISA's with DIFFERENT providers in the smae tax year.

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Can anyone clarify Stocks and shares ISA rules??

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N0vice1Nvest0r

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