Stock & Shares ISA: I opened 2nd Stock & Shares ISA in Tax year 2023/2024

Stock & Shares ISA: I opened second Stock & Shares ISA in Tax year 2023/2024 not realising I could not do that. I opened this second ISA a week before tax year end and paid £1000 into it. As soon as I realised I should not be doing that I initiated the process of withdrawing the money from that ISA, but it wasn't complete before Tax year 2023/2024 ended. What should I do now? In Tax year 2024/2025 I am now allowed to put money into several Stock & Shares ISAs. Can I just keep that £1000 in the 2nd Stock & Shares ISA to count towards my allowance in Tax year 2024/2025? What is the implication of my mistake of having money in that ISA in Tax year 2023/2024?

Hi,

No. For 2023 to 2024, the second ISA will need to be closed. The ISA provider will need to do this, to comply with requlations for that year. The stock and shares will need to be removed from the ISA and any gains arising from disposals, may be liable to Capital Gains Tax. A new ISA can be opened 2024 to 2025.
Thank you.

Thank you for reply! I got advice from you that 2nd ISA should be closed. But I opened that 2nd ISA a week before Tax year 2024/2025 and actually we are in the new tax year now anyway. Should I still close it NOW to basically open it again straight after that? (because I still want to use that 2nd ISA in Tax year 2024/2025). Or I should just keep it and use for my 2024-2025 ISA allowance? Thank you.

Hi,
If any funds were paid into the 2nd ISA they will not qualify for the ISA exemption for any interest paid. HMRC will contact you in due course to advise of the action required.
Thank you.