The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
What is an ISA?
An Individual Savings Account (ISA) is a tax efficient way of saving or investing as all income and capital gains arising within an ISA are exempt from any personal liability to UK income tax and capital gains tax.
There are two main types of ISA:
A payment into an ISA in any tax year is called a subscription. You can only subscribe to one of each type of ISA per tax year.
Who can have an ISA?
To subscribe to an ISA you must be
How much can I invest in an ISA?
Because of their tax advantages ISAs are subject to annual subscription limits. From 6 April 2017 the overall annual ISA subscription limit is £20,000 which can be held in cash, stocks and shares or any combination of the two.
For example, you could chose to pay in:
What is a JISA?
A Junior Individual Savings Account (JISA) are long-term, tax free savings accounts for children.
There are two types of JISA – Cash JISAs and Stocks and shares JISA.
From 6 April 2017 the annual ISA subscription limit for a JISA is £4,128.
How do I apply for an ISA?
After you have chosen your ISA provider, you will need to complete an application form. Many banks have facilities that mean you can do this in branch, over the telephone or online. The form will require usual details such as your name, address, date of birth, National Insurance number and signature. You will also have to provide proof of identity and an address if you are not a customer of the bank already.
How easy is it to withdraw cash and are there any penalties for doing so?
ISA products terms vary, from one ISA manager to another, so you will need to contact the ISA provider for details on potential loss of interest when withdrawing funds.
Can my spouse and I each have an ISA?
Yes. An ISA must be in your name alone. You cannot have a joint ISA. So if you’re married or in a relationship, you can both hold your own ISA, each with the full allowance.
Can I transfer my ISA ?
You can transfer your ISA(s) from one manager to another whenever you want. You may transfer:
If the ISA contains current year subscriptions you must transfer all of the current year’s subscriptions as partial transfers of current year subscriptions are not permitted by HMRC.
Subscriptions to a stocks and shares ISA can be transferred to another stocks and shares ISA or to a cash ISA. Subscriptions to a cash ISA can be transferred to another cash ISA, or to a stocks and shares ISA.
Industry guidelines on cash ISA transfers are available here.
Industry guidelines on stocks and shares ISA to cash ISA transfers are available here.
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