Can I have more than one stocks and shares ISA?
Image source: Getty Images  A stocks and shares ISA provides a tax-efficient way of investing. Any investment growth or income earned in an ISA product is typically tax free. Lets take a look. Compare stocks and shares ISAs If youre planning to open a stocks and shares ISA, choosing the right platform is important. To help you narrow down the choices, weve created a list of some of the top stocks and shares ISAs. A stocks and shares ISA is essentially a tax wrapper that can be put around a wide range of investment products. Any investment income you make in the ISA is sheltered from UK income tax and capital gains tax. That said, its important to remember that tax rules can change and that the benefits will depend on your individual circumstances. Some of the investment products that you can hold within a stocks and shares ISA include:  Individual shares  Exchange-traded funds (ETFs)  Corporate and government bonds  Unit trusts  Investment trusts  OEICs (open-ended investment companies)  Every tax year, there is a maximum amount you can put into your ISA. This is known as your ISA allowance. In the 2021/2022 tax year, the ISA allowance is 20,000. Any unused ISA allowance from the previous year cannot be carried over to the following year, so be sure to use up your entire allowance when possible to reap maximum tax benefits. No. You can only pay into one stocks and shares ISA each tax year. However, you can still pay into other types of ISA, but only one of each type every tax year. So, in the same tax year, you can pay into one:  Stocks and shares ISA  Cash ISA  Lifetime ISA  innovative finance ISA  Junior ISA  However, your total ISA investment across all types of ISA in one year must not exceed your allowance of 20,000. Also, while you can only pay into one stocks and shares ISA every tax year, you can open a new one with a different provider each year if you want to. For example, you may decide to switch ISA providers in search of:  Lower fees and charges  Better service  Exposure to a wider range of investment choices  Or you may just want to consolidate your ISA accounts. When you open a new stocks and share ISA, you cant pay into your old one during the same tax year. These all-too-common investing errors can cause you to miss out on the long-term wealth-building power that shares can hold. To help you side-step these pitfalls, and move forward on your path to wealth-building, weve created a free report, The 3 Worst Mistakes New Investors Make. Just enter you best email below for instant access to your free copy. Click here! Its in your interest to choose a reputable provider that is affordable and has values that align with your investing goals and strategies. To help you narrow down your choices, we have compiled a list of some of the top-rated providers of stocks and shares ISAs in the UK. Of course, before you make any investment, ensure that you have done your research. While a stocks and shares ISA can help you save on tax, it wont help you if you happen to make poor investment choices that end up losing you money. If you are completely new to the concept investing, it might be worth checking out this comprehensive investing guide on our sister site, The Motley Fool, to get you up to speed. Get a free initial review lasting up to 1 hour, plus 50 off any follow-up advice. MyWalletHero has sourced you a 50 discount off the cost of advice when you find an independent or whole-of-market financial adviser through Unbiased.co.uk*. All advisers are FCA-regulated, qualified and give fully unbiased advice. To find yourself an adviser fast and for free  use the Unbiased matching tool. Find an adviser now! *This is an offer from one of our affiliate partners. For more information on why and how we work with partners, click here. About the author Sean LaPointe Sean is a personal finance writer with a strong passion for helping others become more financially literate and make better financial decisions. He covers everything from credit cards to savings to investing.