Am I allowed to invest in 2 ISA's in the same year or do I have to choose between them?

23 March 2021

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Question by E

I have a stock and shares ISA with two separate providers. The ISA accounts were set up in different years (2015 & 2020). Am I allowed to invest in both ISA's in the same year or do I have to choose between them? If so, would it be better to transfer the funds from one provider to the other and invest through a single provider.

Answered by Helena Wardle

No, you would have to choose one of your Stocks and Shares ISA's to contribute to that tax year. You can pay into more than one type of Isa in a tax year. There are four types of ISA's, Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, Lifetime ISA, and you can contribute a total of £20,000 overall in a tax year. For example, you can contribute to a Cash ISA and a Stocks and Share ISA within the same tax year up to the £20,000 limit, but you can't pay into each of your two Stocks and Shares ISA's within the same tax year. Your past tax year's ISA contributions that you built up will be unaffected, so you don’t have to consolidate them. There may be benefits to consolidate the ISA’s if for example, it reduces your charges or makes it easier to track, but it is not necessary. I would start by looking at what do they charge you, does the provider offer you the features you want and need and if the investment option right for you. I hope this helps.

Warm wishes

Answered by

Helena Wardle

Chartered Financial Planner

I am passionate about helping people get more clarity, confidence and reassurance with their money matters. I feel it is important to understand our client’s stories and to help connect their money with what matters to them.