You are allowed to open 1 new Stocks and Shares ISA each tax year. If you opened a new one each year, then over your lifetime you could end up with lots of different ISA accounts with many different companies. It is important to understand though that you are only allowed to pay into one of these Stocks and Shares ISAs each Tax year. So if for example I have 2 Stocks and Shares ISA accounts, I can only pay into 1 of these each tax year. There are other types of ISAs too, such as Cash ISAs. You are allowed to pay into different types of ISAs within the same tax year, so I am allowed to put £2,000 into my Cash ISA, and £2,000 into my Stocks and Shares ISA for example.
No matter what type of Investment Account you are using, the actual Stocks, Funds or Bonds that you have purchased using that account can go up or down in value. It’s important to understand the difference between an investment account and assets you have invested in using that account. When you begin investing it is most common to use a General Investment Account (GIA) or a Stocks and Shares ISA (Individual Savings Account). Once you have opened an account with an investment company, then you can begin buying assets using that account. Typically people buy Stocks, Funds or Bonds, but other types are also available. Anything you purchase into an ISA account in the UK has huge Tax benefits (i.e. you don’t have to pay any!… here you can learn more about what a Stocks and Shares ISA is ) but you should never assume that the value if those assets will always go up. Have a look at British Airways (IAG) shares over the last 5 years, you can see that they have gone down in value by almost 70%