ISA account general questions
How many types of ISA account are there?
There are 4 types: Cash, Stocks and Shares, Innovative and Lifetime ISA (LISA)
Who can open an ISA account?
A Cash ISA can be opened by UK residents at least 16 years old. Stock and Shares and Innovative ISA can be opened by UK residents at least 18 years old. Lifetime ISA can be opened by UK residents between the ages of 18 to 39
How much can I pay into an ISA account?
You can pay £ 20,000.00 in any ISA product, or a total of £ 20,000.00 across more than one ISA product. Except a Lifetime ISA, which only £ 4,000.00 can be subscribed, leaving £ 16,000.00 to be subscribed to the other ISA types
Can I open more than one ISA in the same tax year?
You can invest in any combination of the 4 ISA products in the same tax year, as long as you do not exceed your yearly allowance, but you cannot subscribe to 2 ISA accounts of the same type in the same tax year.
Can I transfer my Stocks and ISA shares ISA to a Cash ISA?
You can transfer your Stocks and Shares ISA to a Cash and vice versa, though you will need to sell the stocks held in the Stocks and Shares ISA first
What is a Flexible ISA account?
A Flexible ISA allows you to withdrawn cash from the ISA wrapper and replace that cash back into the same ISA account within the same tax year. Cash and Stocks and Shares ISA’s can be flexible
What do I do if I oversubscribe my ISA allowance?
Contact the provider you subscribed with last. They may void the subscription, or advise you to await HMRC’s instructions, when they become aware of the oversubscription
How do HMRC know if I’ve oversubscribed?
After the end of the tax year, every ISA provider sends HMRC a return detailing all clients and subscriptions they have made during that tax year.
What happens if I don’t replace a withdrawal back into a Flexible ISA before tax year end?
Then you will have lost the option to replace those funds back into the Flexible ISA
Can I subscribe to more than one Cash ISA in the same tax year?
No, you can only subscribe to one of each type of ISA account in any one tax year
Do providers charge for transferring your ISA to another provider?
Generally, yes, transfer fees are likely to be charged by the outgoing provider. Check your T&C’s to be sure
JISA Accounts
What is the JISA allowance?
As at tax year 19/20 it is £ 4,368.00
Can you withdraw subscriptions from a JISA?
No, once a subscription has been made to a JISA account, those funds can only be withdrawn by the child, when they turn 18 years old
Who can open a JISA account?
A person who has parental responsibility for the child. They are known as the Registered Contact
Can you hold a Child Trust Fund (CTF) and a JISA at the same time?
No, the CTF will need to be transferred to a JISA account, if you wish to open a JISA for the child
Can you transfer a CTF to a JISA account?
Yes, a CTF can be transferred to a JISA account
What happens to a JISA when the child turns 16 and 18?
As at 16 the child can take over management of the JISA from the Registered Contact, and at 18 the child can close and withdraw the assets, or they can convert the JISA to an adult ISA account
Lifetime ISA account (LISA)
When do I receive my LISA bonus?
The LISA bonus will be paid into your LISA account approximately 4 weeks after the date of the subscription
How much is the LISA bonus?
25 percent of the subscription, hence a year maximum bonus of £ 1,000.00 can be earned
Can I still open a Help to Buy ISA?
The Help to Buy ISA closes to new investors on 1st December 2019
Can you transfer a Help to Buy ISA to a LISA account?
After tax year 17/18, cash transferred from a Help to Buy ISA to a LISA will count towards your annual £ 20,000.00 ISA allowance and the LISA specific allowance of £ 4,000.00
What is the LISA penalty charge for withdrawals?
If you make withdrawals for any other reason than a qualifying life event, 25 percent of your withdrawal will be deducted and paid back to HMRC
What is a Life Event?
Buying your first home, terminal illness, or reaching 60 years of age. Each of these events allows you to withdraw money from a LISA without suffering the withdrawal charge
Can you transfer a LISA account to another provider?
Yes, you are free to transfer your LISA at any time
Death of an ISA Investor
What happens to an ISA account when the investor dies?
For deaths post April 6th 2018, the ISA account keeps it’s tax free status until the executors distribute the assets held within the ISA account, This is known as a Continuing ISA account
What is an APS allowance?
When an ISA investor dies, their spouse can make a subscription up to the value of the deceased’s ISA account. This is known as an Additional Permitted Subscription
Can an APS allowance be transferred?
Yes, an APS allowance can be transferred from the deceased’s provider to another ISA provider
Does the APS allowance affect your yearly ISA allowance?
No, the APS allowance is entirely separate to your yearly ISA allowance