Can You Have More Than One ISA in the UK? Rules You Must Know

Many savers in the UK wonder: “Can I have more than one ISA?” The short answer is yes — but there are strict rules about how many ISAs you can pay into each tax year, and not understanding them could lead to tax issues or missed savings opportunities.

In this guide, we explain everything UK savers need to know about holding multiple ISAs, including:

• How many ISAs you’re allowed to open

• Which ones you can pay into in the same year

• How the annual ISA allowance works

• Transfer rules, penalties, and tips for smart savings strategy

What Is an ISA?

An ISA (Individual Savings Account) is a tax-efficient account where you can save or invest without paying tax on the interest, dividends, or capital gains.

There are five main types of ISAs:

1. Cash ISA – tax-free interest on your savings

2. Stocks and Shares ISA – tax-free returns on investments

3. Lifetime ISA (LISA) – a government-backed savings account for first homes or retirement, with a 25% bonus

4. Innovative Finance ISA – for peer-to-peer lending

5. Junior ISA – for under-18s (only a parent or guardian can open this)

You must be a UK resident and aged 16 or over (18+ for some types) to open an ISA.

Read our guide on: What is an ISA and How Does It Work?

How Many ISAs Can You Have?

You can hold multiple ISAs across different providers and different years. For example:

• A Cash ISA from two years ago

• A Stocks and Shares ISA opened this year

• A Lifetime ISA you’ve contributed to for the past three years

There’s no legal limit on how many ISAs you can hold over time — but there are rules about how many you can pay into each tax year.

ISA Contribution Rules (Per Tax Year)

During any one tax year (6 April to 5 April), you can:

• Open and pay into one of each type of ISA

• Not pay into two of the same type in the same tax year

For example, in the same tax year you can contribute to:

• 1 Cash ISA

• 1 Stocks and Shares ISA

• 1 Lifetime ISA (if eligible)

• 1 Innovative Finance ISA

But you can’t contribute to two different Cash ISAs in the same tax year.

Your total contributions across all ISAs cannot exceed the ISA allowance, which is currently £20,000 per tax year.

Read our guide on: How to Maximise Your ISA Allowance Before the Tax Deadline

Example Scenario: Managing Multiple ISAs

Emma has:

• A Cash ISA she contributed to last year

• A Stocks and Shares ISA she opened this year

• A Lifetime ISA started three years ago

This tax year, Emma can:

• Pay into her existing Lifetime ISA

• Open a new Cash ISA and contribute to it

• Continue contributing to her current Stocks and Shares ISA

She must stay within the £20,000 total allowance.

She cannot open and contribute to two separate Cash ISAs in the same tax year.

What Happens If You Contribute to Two of the Same Type?

If you mistakenly pay into two of the same ISA type in a single tax year (e.g. two Cash ISAs):

• You’ll be in breach of HMRC rules

• HMRC may remove the tax-free status from one of the accounts

• Interest or investment gains could become taxable

• You may need to contact your provider and HMRC to correct the issue

To avoid this, always check with your provider whether you're contributing to a new ISA of the same type — especially if switching banks or platforms.

Read our guide on: How to Transfer an ISA Without Losing Tax Benefits

Can You Switch Providers Mid-Year?

Yes — but only via an official ISA transfer.

If you want to move your current year’s ISA to a new provider:

• You must transfer the entire balance contributed so far this tax year

• Use the official transfer process to keep your ISA tax-free

• Transferring does not count as paying into two ISAs of the same type

This allows you to switch to a better rate or lower fees without breaking ISA rules.

Does Opening a New ISA Automatically Close the Old One?

No. You can keep your old ISA even if you stop contributing to it. Many people hold multiple historic ISAs across different providers, especially Cash ISAs or investment accounts.

However, if you’re consolidating ISAs or trying to manage your accounts more efficiently, it’s often worth:

• Transferring old ISAs into a single account

• Reviewing interest rates or investment performance annually

• Closing inactive or low-rate accounts

Read our guide on: Best ISA Providers in the UK: Compare Cash & Stocks and Shares ISAs

Special Rules for Lifetime ISAs

You can only open a Lifetime ISA (LISA) if you’re aged 18–39, and you can only contribute up to £4,000 per tax year. The government adds a 25% bonus (up to £1,000 annually).

Important restrictions:

• You can only pay into one Lifetime ISA per tax year

• The £4,000 LISA allowance counts toward your overall £20,000 ISA limit

• Withdrawals before age 60 or outside of buying a first home incur a 25% penalty

Read our guide on: Lifetime ISA vs Help to Buy ISA: Which is Better for First-Time Buyers?

Overlooked Tip: Use Old ISAs to Maximise Long-Term Growth

Many savers ignore older ISAs once they stop contributing — especially Cash ISAs with poor interest rates.

You can:

• Transfer old ISAs into higher-interest Cash ISAs

• Combine them with Stocks and Shares ISAs for long-term investing

• Use them strategically to reduce admin and track performance

This approach doesn’t affect your current year’s allowance and can boost returns with minimal effort.

Key Rules to Remember

• You can hold multiple ISAs, including old ones

• You can pay into one of each ISA type per tax year

• You can transfer previous ISAs at any time

• You cannot pay into two of the same type in the same tax year

• You cannot exceed the £20,000 annual ISA allowance

Read our guide on: Cash ISA vs Regular Savings Account: Which is Better?

Frequently Asked Questions (FAQs)

Can I open a new ISA every year?

Yes. You can open a new ISA of each type every tax year if desired — just ensure you stay within contribution limits and follow the rules.

What happens if I exceed the ISA allowance?

HMRC may remove the tax-free status on the excess contributions and require tax to be paid on interest or gains.

Can I pay into a Cash ISA and a Stocks and Shares ISA?

Yes — as long as you only contribute to one of each type, and your combined contributions stay within the £20,000 limit.

Will HMRC know if I have multiple ISAs?

Yes. ISA providers report contributions to HMRC, so your usage is monitored to ensure compliance with the annual limits.

Can I hold ISAs with different banks?

Yes. You can hold multiple ISAs across various providers — just be careful not to contribute to more than one of the same type in a single tax year.

Final Thoughts

Having more than one ISA is perfectly legal — and in many cases, it’s a smart way to diversify your savings strategy. The key is understanding the rules around contributions, staying within the annual allowance, and using the official ISA transfer process to move money between providers without penalty.

Whether you're saving for a home, investing for retirement, or simply trying to shield more of your returns from tax, multiple ISAs can help — if managed wisely.

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