Can you have two ISAs of the same type in the same tax year in the UK?

Full answer

Before April 2024, the rule was one ISA of each type per tax year. You could open one Cash ISA and one Stocks and Shares ISA in the same year, but not two Cash ISAs. The April 2024 rule change: - From 6 April 2024, you can subscribe to multiple ISAs of the same type in the same tax year. - For example, you can open a Cash ISA with Bank A and another Cash ISA with Bank B in 2026/27 and contribute to both. - The total contributed across all ISAs combined must still not exceed £20,000 in the tax year. Why the change was made: - The government wanted to make it easier to switch ISA providers mid-year and take advantage of better interest rates without losing your existing ISA balance. - Previously, if you had already subscribed to a Cash ISA and wanted to switch provider, you had to do a formal ISA transfer (which could be slow and complex). Types of ISA you can hold multiple of: - Cash ISA - Stocks and Shares ISA - Innovative Finance ISA - Lifetime ISA (though the annual Lifetime ISA contribution limit remains £4,000) Important caveats: - The £20,000 overall annual subscription limit is unchanged and applies across all your ISAs combined. - Junior ISA: still limited to one Cash JISA and one Stocks and Shares JISA per child, with a £9,000 combined limit. - Each ISA maintains its own tax-free wrapper -- future interest, dividends, and gains within each remain sheltered from tax. Transfers: - ISA transfers between providers remain possible and do not count toward your annual subscription limit.

Related guides

• Isa Guide
• Cash Isa Vs Stocks Shares Isa Guide

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