You can save tax-free with Individual Savings Accounts ( ISAs ). In the 2024 to 2025 tax year, the maximum you can save in ISAs is £20,000 There are 4 types of ISA : cash ISA stocks and shares ISA innovative finance ISA Lifetime ISA This guide is also available in Welsh (Cymraeg) . Who can open an ISA You must be 18 or over to open an ISA . If you’re opening a Lifetime ISA you must also be under 40. If you were born between 6 April 2006 and 5 April 2008, you can open one cash ISA before you turn 18. You must also be either: resident in the UK a member of the armed forces or a Crown servant (for example diplomatic or overseas Civil Service) or their spouse or civil partner if you do not live in the UK You cannot hold an ISA with someone else. You can get a Junior ISA for children under 18. Opening and managing an ISA for someone who lacks the mental capacity to do this for themselves You can apply for and manage an ISA on someone’s behalf if: you hold lasting power of attorney (LPA) for them you’re a financial affairs deputy for them To apply to become a financial affairs deputy: in England and Wales apply to the Court of Protection in Scotland apply to the Office of the Public Guardian in Scotland in Northern Ireland apply to the Office of Care and Protection

There are 4 types of Individual Savings Accounts ( ISA ): cash ISA stocks and shares ISA innovative finance ISA Lifetime ISA You do not pay tax on: interest on cash in an ISA income or capital gains from investments in an ISA If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it. Putting money into an ISA Every tax year you can save up to £20,000 in one account or split the allowance across multiple accounts. The tax year runs from 6 April to 5 April. You can only pay into one Lifetime ISA in a tax year. The maximum you can pay in is £4,000. Example You could save £15,000 in a cash ISA , £2,000 in a stocks and shares ISA and £3,000 in an innovative finance ISA in one tax year. Example You could save £11,000 in a cash ISA , £2,000 in a stocks and shares ISA , £3,000 in an innovative finance ISA and £4,000 in a Lifetime ISA in one tax year. Example You could save £10,000 in one cash ISA , £3,000 in another cash ISA and £7,000 in a stocks and shares ISA in one tax year. Your ISAs will not close when the tax year finishes. You’ll keep your savings on a tax-free basis for as long as you keep the money in your ISA accounts. What you can include in your ISAs Cash ISAs can include: savings in bank and building society accounts some National Savings and Investments products Stocks and shares ISAs can include: shares in companies unit trusts and investment funds corporate bonds government bonds You cannot transfer any non-ISA shares you already own into an ISA unless they’re from an employee share scheme . Lifetime ISAs may include either: cash stocks and shares Innovative finance ISAs include: peer-to-peer loans - loans that are given to other people or businesses without using a bank ‘crowdfunding debentures’ - investing in a business by buying its debt funds where the notice or redemption period means they cannot be held in a stocks and shares ISA You cannot transfer any arrangements you’ve already made or investments you already hold into an innovative finance ISA . If you have questions about the tax rules for ISAs , you can call the ISA Helpline .

You can get an Individual Savings Account ( ISA ) from: banks building societies credit unions friendly societies stock brokers peer-to-peer lending services crowdfunding companies other financial institutions Contact your provider directly for more information about how to open an ISA with them.

Withdrawing your money

You can take your money out of an Individual Savings Account ( ISA ) at any time, without losing any tax benefits. Check the terms of your ISA to see if there are any rules or charges for making withdrawals. There are different rules for taking your money out of a Lifetime ISA . If your ISA is ‘flexible’, you can take out cash then put it back in during the same tax year without reducing your current year’s allowance. Your provider can tell you if your ISA is flexible. Example Your allowance is £20,000 and you put £10,000 into an ISA during the 2024 to 2025 tax year. You then take out £3,000. The amount you can now put in during the same tax year is: £13,000 if your ISA is flexible (the remaining allowance of £10,000 plus the £3,000 you took out) £10,000 if your ISA is not flexible (just the remaining allowance)

Transferring your ISA

You can transfer all or part of the savings in your Individual Savings Account ( ISA ) from one provider to another at any time. It can be to a different type of ISA or the same type. The investment can have been made this year or in previous years. There are restrictions on the transfers you can make if you have a Lifetime ISA or a Junior ISA . Restrictions on what you can transfer You can transfer cash from your innovative finance ISA to another provider - but you may not be able to transfer other investments from it. Check with your provider for any restrictions they may have on transferring ISAs . They may also make you pay a charge. How to transfer your ISA To switch providers, contact the ISA provider you want to move to and fill out an ISA transfer form to move your account. If you withdraw the money without doing this, you will not be able to reinvest that part of your tax-free allowance again . Deadlines and complaints ISA transfers should take no longer than: 15 working days for transfers between cash ISAs 30 calendar days for other types of transfer If you want to transfer investments held in an innovative finance ISA, ask your provider how long it will take. If your transfer takes longer than it should, contact your ISA provider. If you’re unhappy with the response, you can take the matter up with the Financial Ombudsman Service. Financial Ombudsman Service Telephone (for landlines): 0800 023 4567 Telephone (for mobiles): 0300 123 9123 Monday to Friday, 8am to 8pm Saturday, 9am to 1pm Find out about call charges

If you open an Individual Savings Account ( ISA ) in the UK then move abroad, you cannot put money into it after the tax year that you move (unless you’re a Crown employee working overseas or their spouse or civil partner). You must tell your ISA provider as soon as you stop being a UK resident. However, you can keep your ISA open and you’ll still get UK tax relief on money and investments held in it. You can transfer an ISA to another provider even if you are not resident in the UK. You can pay into your ISA again if you return and become a UK resident (subject to the annual ISA allowance ).

Your ISA will end when either: your executor closes it the administration of your estate is completed Otherwise, your ISA provider will close your ISA 3 years and 1 day after you die. There will be no Income Tax or Capital Gains Tax to pay up to that date, but ISA investments will form part of your estate for Inheritance Tax purposes. Stocks and shares ISAs Your ISA provider can be instructed to either: sell the investments and pay the proceeds to the administrator or beneficiary of your estate transfer the investments to your surviving spouse’s or civil partner’s ISA - this is only possible if they have the same ISA provider as you Check the terms and conditions of your ISA for details.

Inheriting an ISA from your spouse or civil partner

If your spouse or civil partner dies you can inherit their ISA allowance. As well as your normal ISA allowance you can add a tax-free amount up to either: the value they held in their ISA when they died the value of their ISA when it’s closed Contact your ISA provider or the provider of your spouse or civil partner’s ISA for details. If your spouse or civil partner died from 3 December 2014 to 5 April 2018 Their ISA ended on the date of their death. ISA investments will form part of their estate for Inheritance Tax purposes. Their ISA provider can be instructed to sell the investments and either: pay the proceeds to the administrator or beneficiary of their estate transfer the investments directly to them You can inherit their ISA allowance. As well as your normal ISA allowance, you can add a tax-free amount up to the value they held in their ISA when they died. Contact your ISA provider or the provider of your spouse or civil partner’s ISA for details.

Individual Savings Accounts (ISAs)

Overview

You can save tax-free with Individual Savings Accounts (ISAs).

In the 2024 to 2025 tax year, the maximum you can save in ISAs is £20,000

There are 4 types of ISA:

cash ISA
stocks and shares ISA
innovative finance ISA
Lifetime ISA

This guide is also available in Welsh (Cymraeg).

Who can open an ISA

You must be 18 or over to open an ISA. If you’re opening a Lifetime ISA you must also be under 40.

If you were born between 6 April 2006 and 5 April 2008, you can open one cash ISA before you turn 18.

You must also be either:

resident in the UK
a member of the armed forces or a Crown servant (for example diplomatic or overseas Civil Service) or their spouse or civil partner if you do not live in the UK

You cannot hold an ISA with someone else.

You can get a Junior ISA for children under 18.

Opening and managing an ISA for someone who lacks the mental capacity to do this for themselves

You can apply for and manage an ISA on someone’s behalf if:

you hold lasting power of attorney (LPA) for them
you’re a financial affairs deputy for them

To apply to become a financial affairs deputy:

in England and Wales apply to the Court of Protection
in Scotland apply to the Office of the Public Guardian in Scotland
in Northern Ireland apply to the Office of Care and Protection

View a printable version of the whole guide

Individual Savings Accounts (ISAs)

Overview

Who can open an ISA

Opening and managing an ISA for someone who lacks the mental capacity to do this for themselves

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Individual Savings Accounts (ISAs)

Overview

Who can open an ISA

Opening and managing an ISA for someone who lacks the mental capacity to do this for themselves

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