#TaxQuestions #Investing #ISAs
Hey there, fellow investors in England! 🌟
So, the question on the table today is: “I used two stocks and shares ISAs this tax year, will I go to jail?” Let’s break it down:
Here’s the dilemma: you accidentally opened and contributed to two S&S ISAs this tax year, but both fall below the £20,000 annual limit. You have a Monzo S&S ISA and an AjBell YouInvest S&S ISA, and you’ve made contributions to both. Can you use both in the same tax year without facing legal repercussions?
Well, technically, the rule states that you can only contribute to one S&S ISA per tax year. However, as long as your total contributions across both accounts remain under the £20,000 limit, you should be okay. Here are some key points to consider:
– The £20,000 limit applies to the total contributions across all your ISAs, not each individual one
– HMRC may reach out to you for clarification, but as long as you’re transparent about your situation, you should be fine
– To avoid any potential issues, consider consolidating your contributions into one ISA moving forward
Remember, it’s always best to seek professional financial advice in situations like these. Don’t stress too much, but stay informed and be proactive about managing your investments! 💼💡
Hope this helps! Let me know your thoughts or share your own tips in the comments below. Happy investing! 🚀📈
Mistakenly prosecuted bro.
Use ISA? Jail. Don’t use ISA, believe it or not also jail.
We have the most well behaved citizens. Because of jail.
Yep. Straight to jail.
Straight to jail – No exceptions.
This year you’re fine. Last year, believe it or not, execution.
The jails are full, you’ll just be fed to the lions at London Zoo.
Nah, you’re fine, this isn’t a criminal matter anyway, the worst that could ever happen is a reversal of contributions and/or a fine.
> I realised the contribution rules are that I cannot use both in one tax year
Not any more they’re not. As of the start of this tax year on 6th April you can pay into as many ISAs as you like (excluding LISAs and JISAs which are still limited to one per year) so long as you stay within the £20k limit.
If the total contribution since April 6th is less than £20K you didn’t do anything wrong. There was a rule change allowing you to open and contribute to multiple ISAs of the same type: https://moneyweek.com/personal-finance/savings/isas/multiple-isa-rule-how-it-works