Since 6 April 2024, you are allowed to open and contribute to multiple ISAs of the same type for example, two different Cash ISAs within the same tax year. However, your total contributions across all your ISAs must still remain within the annual £20,000 allowance.
You can indeed contribute to more than one cash ISA in the same tax year but you must track your total subscriptions carefully. If you put £10,000 into one Cash ISA and £12,000 into another, you would exceed the £20,000 limit by £2,000 triggering a penalty from HMRC. Therefore while multiple accounts are permitted, the key restriction is the overall annual allowance not the number of accounts.
A common misunderstanding is that opening multiple ISAs means you get multiple allowances in which this is false. The £20,000 limit is shared across every ISA you hold, regardless of how many accounts you open so if you open three Cash ISAs and put £6,000, £7,000, and £8,000 respectively, you would be £1,000 over the limit and face HMRC penalties.. So its better to just do the right thing
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