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Multiple ISAs in a single year

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aligibbs
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Multiple ISAs in a single year

#135110

Postby aligibbs » April 27th, 2018, 12:38 pm

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?

AleisterCrowley
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Re: Multiple ISAs in a single year

#135113

Postby AleisterCrowley » April 27th, 2018, 12:48 pm

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

Alaric
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Re: Multiple ISAs in a single year

#135124

Postby Alaric » April 27th, 2018, 1:10 pm

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 ?

aligibbs
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Re: Multiple ISAs in a single year

#135138

Postby aligibbs » April 27th, 2018, 1:58 pm

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.

Alaric
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Re: Multiple ISAs in a single year

#135197

Postby Alaric » April 27th, 2018, 5:18 pm

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.

swill453
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Re: Multiple ISAs in a single year

#135201

Postby swill453 » April 27th, 2018, 5:27 pm

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.

aligibbs
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Re: Multiple ISAs in a single year

#135221

Postby aligibbs » April 27th, 2018, 6:37 pm

"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?

SteelCamel
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Re: Multiple ISAs in a single year

#135227

Postby SteelCamel » April 27th, 2018, 7:14 pm

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.

AleisterCrowley
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Re: Multiple ISAs in a single year

#135229

Postby AleisterCrowley » April 27th, 2018, 7:21 pm

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...

tjh290633
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Re: Multiple ISAs in a single year

#135238

Postby tjh290633 » April 27th, 2018, 8:10 pm

What is an IFISA?

TJH

swill453
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Re: Multiple ISAs in a single year

#135239

Postby swill453 » April 27th, 2018, 8:12 pm

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.

AleisterCrowley
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Re: Multiple ISAs in a single year

#135242

Postby AleisterCrowley » April 27th, 2018, 8:25 pm

tjh290633 wrote:What is an IFISA?

TJH

Innovative Finance ISA: P2P lending, Ratesetter et al

uspaul666
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Re: Multiple ISAs in a single year

#135248

Postby uspaul666 » April 27th, 2018, 8:56 pm

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

aligibbs
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Re: Multiple ISAs in a single year

#135447

Postby aligibbs » April 29th, 2018, 9:14 am

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.

aligibbs
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Re: Multiple ISAs in a single year

#135448

Postby aligibbs » April 29th, 2018, 9:14 am

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.


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