If you have two consequative s&s isa. with FT,this year and last year’s. Both with cash deposits and you withdraw some cash. Where will it be taken from? This year’s or last year’s?
You cant have two S&S ISA’s with FT. You just have one, that gets a re-set of another £20k allowed to be added to it for this financial year. .
ISAs can now be flexible (or at least I know they can for Cash ISAs). I.e. if you have topped up your ISA in the current tax year and withdraw some of that cash later (within the same tax year), you MIGHT be able to add it back into your ISA at a later point in the same tax year without it affecting your allowance…this is dependent on provider and I am not sure if FT offer that
Just to be clear on how ISAs work…
The govt restriction is that you can only subscribe/fund to one ISA in any given tax year. So, when you deposit cash with any ISA within a tax year, that means that you can then only continue to deposit into that ISA for the rest of the tax year.
However, once the money is in the ISA, the government doesn’t care what happens to it. You can buy and sell stocks to your hearts content (but, be aware that stamp duty and FX fees make changing your mind on stocks potentially less lucrative) as all that trading is within an already subscribed ISA.
There is no such thing as “last year’s ISA” and “this year’s ISA”. The important thing is the ISA provider and where you deposit money into. At the start of the tax year, you’ll notice at the top of the screen your allowance is reset to £20,000. You can either deposit more into Freetrade and then you can’t fund any other ISA provider this year. Or you can continue to trade with funds you already have in Freetrade and open a new ISA somewhere else if you like.
Personally, I made sure I stuck the full £20000 in last month, even though it’s not all invested yet and I plan to spread out that investing over a few months. When I use up my available funds, I’ll decide at that point what I’m doing with my ISA allowance for this year.
Thank you for your reply which makes things a lot clearer. I have not subscribed any funds to this current year’s allowance as I would like to try trade 212 when they eventuality allow new members.
From what I can see there is only one broker that offers a flexible stocks and shares ISA, charles stanley, and they charge £11.50 per buy/sell.
Others say they’re looking into it but its not in high demand because most users want to hold long term. Sounds like there are additional costs or admin on their side so FT might similarly not think its worth it.
Just one small addition to that: you can only contribute to one ISA of each type per year. You can contribute new money to a cash ISA, an IFISA, a stocks & shares ISA, and a lifetime ISA all in the same year.
For example, see the following gov.uk web page: “You could save £11,000 in a cash ISA, £2,000 in a stocks and shares ISA, £3,000 in an innovative finance ISA and £4,000 in a Lifetime ISA in one tax year.”
Vanguard offers a flexible S&S ISA too