The Lemon Fool

So, I know you can only put £20,000 into an ISA during the year (in any mix for S&S, CASH and IFISA), but say I wanted to reduce my risk to a single IFISA provider, could I put £20,000 into a cash ISA today, then tomorrow open 4 IFISA's with transfers (from the cash ISA) of £5,000 into each?

Basically, I want to open maybe 5-10 IFISAs to spread my risk depending on the market that each IFISA target. Can I do this?

It's complicated, but;
https://www.gov.uk/individual-savings-a ... g-your-isa

"If you want to transfer money you’ve invested in an ISA during the current year, you must transfer all of it.
For money you invested in previous years, you can choose to transfer all or part of your savings."

I read that as if you opened the Cash ISA last year you could split, but this (financial) year you could only transfer the whole sum to one IFISA

aligibbs wrote:
Basically, I want to open maybe 5-10 IFISAs to spread my risk depending on the market that each IFISA target. Can I do this?

You can only do this by opening a new account each tax year.

But what risks do you avoid by not having 1 * £ 20000 ISA as distinct from 5 * £ 4000 ?

Alaric wrote:

aligibbs wrote:
Basically, I want to open maybe 5-10 IFISAs to spread my risk depending on the market that each IFISA target. Can I do this?

You can only do this by opening a new account each tax year.

But what risks do you avoid by not having 1 * £ 20000 ISA as distinct from 5 * £ 4000 ?

IFISA providers tend to focus on different areas- eg. property, p2p loans, cars etc etc. There is also the possibility of platform fraud.

aligibbs wrote:IFISA providers tend to focus on different areas- eg. property, p2p loans, cars etc etc. There is also the possibility of platform fraud.

https://innovativefinanceisa.org.uk/inn ... mitations/

Current IFISA rules mean that individuals can invest into only one IFISA account within the tax year, via a single peer-to-peer lending platform. The IFISA rules do not currently permit the aggregation of peer-to-peer lending activities across multiple platforms – unlike with a stocks and shares ISA.

https://innovativefinanceisa.org.uk/inn ... isa-rules/

Investors will only be able to contribute to one Innovative Finance ISA account per tax year. Whilst the individual will be able to lend money via multiple Peer-to-Peer lending platforms, only one IFISA may be contributed to.

The only route to diversity is to hold on one platform for the first year and then switch.

Whilst switching IFISA providers will be possible, it may prove difficult in practice due to the fact that the investor will – by the very nature of Peer-to-Peer lending – very likely hold debt securities with that platform which cannot be transferred into a different Peer-to-Peer lending platform.

If you had funds in ISAs from previous years, either shares or cash ISAs, then presumably you could transfer it (as cash) to multiple IFISAs this year.

Scott.

"Interestingly, there is presently no upper limit that an investor can hit in terms of transferring Cash or the cash proceeds held within a Stocks & Shares ISA into an IFISA"

So single IFISA, but can transfer in any amount?

aligibbs wrote:So, I know you can only put £20,000 into an ISA during the year (in any mix for S&S, CASH and IFISA), but say I wanted to reduce my risk to a single IFISA provider, could I put £20,000 into a cash ISA today, then tomorrow open 4 IFISA's with transfers (from the cash ISA) of £5,000 into each?

Basically, I want to open maybe 5-10 IFISAs to spread my risk depending on the market that each IFISA target. Can I do this?

Not that way you can't. Or at least not unless today is the last day of the tax year...

You can only subscribe to one ISA of each type each year. However, there are no limits on transfers of previous year's subscriptions. To do what you want, you would need to pay money into a cash ISA in March, wait for the tax year to end, then transfer the money after 6th April - into as many ISAs as you want and the providers will let you have.

Is there a limit to how many ISAs one can open and transfer into in a tax year?
As an example, could I open four cash ISAs this tax year and transfer in cash to all of them from a previous year's ISA, with no new subscriptions?
Assuming the providers would let me...

What is an IFISA?

TJH

AleisterCrowley wrote:Is there a limit to how many ISAs one can open and transfer into in a tax year?
As an example, could I open four cash ISAs this tax year and transfer in cash to all of them from a previous year's ISA, with no new subscriptions?
Assuming the providers would let me...

Yes you could.

Scott.

tjh290633 wrote:What is an IFISA?

TJH

Innovative Finance ISA: P2P lending, Ratesetter et al

ISA enabled platform aggregators are starting to appear, like goji, but they are new, untested and only offer a limited number of platforms.

uspaul666 wrote:ISA enabled platform aggregators are starting to appear, like goji, but they are new, untested and only offer a limited number of platforms.

Awesome- thanks for the info, i had no idea they existed.

uspaul666 wrote:ISA enabled platform aggregators are starting to appear, like goji, but they are new, untested and only offer a limited number of platforms.

Awesome- thanks for the info, i had no idea they existed.