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Can an IFISA be held with more than one provider

Can an IFISA be held with more than one provider

Yes, but it is more complex due to the ‘one of each type’ rule. There are three ways to open more than one IFISA:

  • Every tax year the IFISA provider can be changed so there are multiple IFISAs with multiple providers. This requires opening a new IFISA each year with different providers.
  • Investors can transfer funds between ISA managers. This is especially useful if there are funds subscribed to ISAs in previous years that investors want to invest in P2P. Investors can transfer previous years funds to more than one IFISA provider.
  • Initially, HMRC drafted the regulations so that only P2P providers could be IFISA managers. The online lending industry successfully campaigned to change these rules though so that third party ISA managers, such as investment platforms, could be ISA managers and enable investors to diversify their ISAs.

PLEASE REMEMBER, REGARDLESS OF THE TAX BENEFITS, CAPITAL IS AT RISK

Whether investments are held within a IFISA or in a general account, they are not covered by the FSCS; the government backed deposit insurance scheme that protects bank deposits including Cash ISAs.

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