A reader wants to know the consequences of paying into two different Stocks and Shares ISAs
Currently, the golden rule is investors can only pay into one ISA type each tax year savings to be answered by our expert, Tom Selby, director of public policy at investment platform AJ Bell. There is nothing he does not know about pensions. If you have a question for him, email us atwith different providers as part of my retirement saving plan. However, I have just found out that this was against the rules, and have stopped my payments in.
However, in all other circumstances your withdrawals will be subject to a government-imposed 25 per cent penalty, meaning you might get back less than you originally put in.As things stand, everyone can have two or more Cash ISAs or two or more Stocks & Shares ISAs, but the golden rule is investors can only pay into one ISA type each tax year.
The good news is the Government is simplifying the situation. From 6 April 2024, investors will be allowed to pay into two or more Cash ISAs in the same tax year, and the same for two or more Stocks & Shares ISAs. The most likely outcome is the second ISA provider will refund the payments into the ISA and close or void the ISA.Finally, a quick word on how much people can pay in. You can pay in up to £20,000 a year into an adult ISA. This could be split across different types of ISA, such as a Cash ISA and a Stocks & Shares ISA.
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