How Many Investment ISAs Can I Have?
Investing in an ISA can be a great way to make sure that your returns from investments are safe from the hands of the tax man, thereby maximising the benefits you receive from your funds. But just how many investment ISAs can you benefit from at any one time?
An investment ISA is an attractive option for any investor, whether they are old-hat or brand new to the game. Stocks and Shares ISAs allow you to put your money to work in a tax-efficient way, making the most of your returns on any investments you might make.
And with a yearly ISA allowance of £20,000 for tax year 2020/2021, many will be very keen to put their coins into a Stocks and Shares ISA.
But are there limits on how many Investment ISAs you can have?
The answer: yes, and no
There is a limit on how many ISAs you can open per year.
Government legislation limits each individual to opening only one new Investment ISA per tax year.
Let's say you have a lump sum of £20,000 (the yearly ISA allowance for 2020/2021) and you want to put this into an ISA.
You could choose to put this total amount into a Stocks and Shares ISA, or split it across the four different types of ISA available - but, you cannot open more than one ISA of each type per tax year.
The types of ISA you can choose from are:
There is no limit on the number of past Investment ISAs you can hold. You can continue to open one investment ISA, year on year, and amass a portfolio of quite a few Stocks and Shares ISAs over time.
This can be a good approach to gain long-term returns, as well as the opportunity to diversify your portfolio. Some examples of different kinds of Investment ISAs are:
- Index Tracker Investment ISA
- Fund Supermarket Investment ISA
- Ethical Investment ISA
- High Income Investment ISA
- ETF ISAs
- Gold Investment ISAs
- Monthly Income Investment ISAs
- Share Dealing Investment ISAs
- Self Select Investment ISA
- Structured Growth Investment ISAs