How Many Stocks and Shares ISAs Am I Allowed?
Are you a looking to open a Stocks and Shares ISA to make the most of your tax-efficient savings allowance, but wondering how many you're allowed to open? We've broken down the rules for you, as well as your options beyond just an Investment ISA.
What's a Stocks and Shares ISA?
A Stocks and Shares ISA - also known as an Investment ISA - is a tax-free wrapper for your savings which enable you to earn returns on your investments which are safe from the tax man.
Your tax allowance for 2020/2021 is £20,000 and the deadline is 5 months away, so if you've not squirrelled away some cash into an ISA then now is the time for this tax year.
In order to open an Investment ISA, you must be:
- 18 or over
- a citizen of the UK
How many can I open?
You can open one new Investment ISA in your name each tax year, which runs from April 6th - April 5th each year.
So, if you want to open one before the end of tax year 2020/2021, you should open it before April 6th and this counts as your Investment ISA for 2020/2021.
But if you were then to open a second Investment ISA on April 8th, this would be your Investment ISA for 2021/2022. In theory, you could continue opening one Investment ISA per year for as long as you're able.
If you are a parent, you can open an Investment Junior ISA for your child; we've put together a blog breaking down how to do this and the limits involved which you should read if you want more information.
I've opened my ISA, but found a better ISA account. What should I do?
You can transfer your funds between ISAs in this case, either into another Stocks and Shares ISA or into a Cash ISA.
You might be subject to some penalties for withdrawing your money from your Investment ISAs, however, so make sure you check before you move forward with the transfer - and ensure the providers handle the transfer for you, rather than withdrawing your money yourself, as your money will lose it's tax-free status if you do this.
I've already opened an Investment ISA. What are my other options?
Your have lots of other options for tax-efficient savings if you've already used opened your Investment ISA for this year.
If you've still got money in your ISA allowance left for this year which you haven't yet invested, then you could open:
And if you are looking for an account outside of the ISA wrapper, you could open a Cash Savings Account which offers tax free returns on interest up to £1000.