Individual Savings Accounts (ISAs)

ISAs are tax-efficient savings accounts available to UK residents. They offer tax-free gains and have a low minimum subscription requirement. Individuals can invest in equities, bonds, collectives, and cash deposits within an ISA.

The maximum subscription limit for the tax year is £20,000 per person. Please refer to our Tax Rate Card 2023/2024 for specific limits on Junior ISAs, Lifetime ISAs, and Help to Buy ISAs.

Although gains in ISAs are tax-free, stocks and shares are subject to a 10% dividend tax credit for UK equities, which cannot be claimed back.

Transferring your ISA: You can only have one of each type of ISA per tax year. If you close an ISA within the same tax year it was opened, you won’t be able to open a new one until the next tax year.

Transferring your ISA between providers is possible, but not all providers accept transfers. Cash ISAs are often transferred to maintain initial interest rates and benefits, such as switching from a cash ISA to a stocks and shares ISA and vice versa. The new provider will handle the transfer process using your account details. Remember that closing an ISA and opening a new one in the same tax year cancels the tax-free status of your investment.

Your ISA allowance for the current year is separate from previous years, allowing you to hold two ISAs for this and the previous tax year, but you can only contribute to one during the tax year.

If you need guidance on ISAs or the best investment approach, consult one of our independent financial advisers.