Can you hold cash and stocks and shares ISAs with different providers?
Tuesday, 03 Apr 2007 13:22
Can you invest in a stocks and shares ISA and a mini cash ISA with different providers?
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Plugging into IFA Promotion's network of specialist financial advisers myfinances.co.uk answers your questions.
Question
Can I invest £5,000 in an equity ISA and £2,000 in a cash ISA for tax year 2007/2008, with two different providers?
Donna Bradshaw, Financial Planning Strategist at IFG Group, answers:
Changes to ISA rules were published in December 2006, which will allow savers to invest in a cash and stocks and shares ISA with either the same or different providers for each component - up to an overall investment limit of £7,200 (with an investment limit £3,600 for the cash element).
However, these changes don't come into effect until 6th April 2008.
That means, if you invest in a cash ISA in the tax year 2007/2008, the maximum you can invest in an equity ISA is £4,000, but from the tax year 2008/2009 you will be able to invest the proportions you mention with two different providers.
If you have an ISA question, got to www.myfinances.co.uk/ask-the-isa-expert