{"id":807,"date":"2020-05-14T11:22:36","date_gmt":"2020-05-14T10:22:36","guid":{"rendered":"https:\/\/thefinancialeducation.co.uk\/?p=807"},"modified":"2020-05-14T11:37:12","modified_gmt":"2020-05-14T10:37:12","slug":"isa-individual-saving-account-in-the-uk","status":"publish","type":"post","link":"https:\/\/thefinancialeducation.co.uk\/index.php\/2020\/05\/14\/isa-individual-saving-account-in-the-uk\/","title":{"rendered":"ISA (Individual Saving Account) in the UK"},"content":{"rendered":"\n<p>You can save tax-free with Individual Savings Accounts (ISAs).<\/p>\n\n\n\n<p>In the 2020 to 2021 tax year, the maximum you can save in\u00a0ISAs\u00a0is<em>\u00a320,000<\/em><\/p>\n\n\n\n<p>There are 4 types of&nbsp;ISA:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>cash&nbsp;ISAs<\/li><li>stocks and shares&nbsp;ISAs<\/li><li>innovative finance&nbsp;ISAs<\/li><li><a href=\"https:\/\/www.gov.uk\/lifetime-isa\">Lifetime&nbsp;<abbr title=\"Individual Savings Accounts\">ISAs<\/abbr><\/a><\/li><\/ul>\n\n\n\n<p>You can put money into one of each kind of&nbsp;ISA&nbsp;each tax year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"who-can-open-an-isa\">Who can open an&nbsp;ISA<\/h2>\n\n\n\n<p>You must be:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>16 or over for a cash&nbsp;ISA<\/li><li>18 or over for a stocks and shares or innovative finance&nbsp;ISA<\/li><li>18 or over but under 40 for a Lifetime&nbsp;ISA<\/li><li>resident in the UK<\/li><li>a Crown servant (for example diplomatic or overseas civil service) or their spouse or civil partner&nbsp;<a href=\"https:\/\/www.gov.uk\/individual-savings-accounts\/if-you-move-abroad-or-die\">if you do not live in the UK<\/a><\/li><\/ul>\n\n\n\n<p>You cannot hold an&nbsp;ISA&nbsp;with or on behalf of someone else.<\/p>\n\n\n\n<p>You can get a\u00a0<a href=\"https:\/\/www.gov.uk\/junior-individual-savings-accounts\">Junior\u00a0<abbr title=\"Individual Savings Account\">ISA<\/abbr><\/a>\u00a0for children under 18.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">How ISAs work<\/h1>\n\n\n\n<p>There are 4 types of Individual Savings Accounts (ISA):<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>cash&nbsp;ISA<\/li><li>stocks and shares&nbsp;ISA<\/li><li>innovative finance&nbsp;ISA<\/li><li><a href=\"https:\/\/www.gov.uk\/lifetime-isa\">Lifetime&nbsp;<abbr title=\"Individual Savings Account\">ISA<\/abbr><\/a><\/li><\/ul>\n\n\n\n<p>You do not pay tax on:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>interest on cash in an&nbsp;ISA<\/li><li>income or <abbr class='c2c-text-hover' title='is anything that increases one\u2019s ability to generate value. It can be used to increase value across a wide range of categories, such as financial, social, physical, intellectual, etc. In business and economics, the two most common types of capital are financial and human. Capital is the money used to build, run, or grow a business. It can also refer to the net worth (or book value) of a business. Capital most commonly refers to the money used by a business either to meet upcoming expenses, or to invest in new assets and projects.'>capital<\/abbr> gains from investments in an&nbsp;ISA<\/li><\/ul>\n\n\n\n<p>If you complete a tax return, you do not need to declare any&nbsp;ISA&nbsp;interest, income or <abbr class='c2c-text-hover' title='is anything that increases one\u2019s ability to generate value. It can be used to increase value across a wide range of categories, such as financial, social, physical, intellectual, etc. In business and economics, the two most common types of capital are financial and human. Capital is the money used to build, run, or grow a business. It can also refer to the net worth (or book value) of a business. Capital most commonly refers to the money used by a business either to meet upcoming expenses, or to invest in new assets and projects.'>capital<\/abbr> gains on it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"putting-money-into-an-isa\">Putting money into an&nbsp;ISA<\/h2>\n\n\n\n<p>Every tax year you can put money into one of each kind of&nbsp;ISA. The tax year runs from 6 April to 5 April.<\/p>\n\n\n\n<p>You can save up to \u00a320,000 in one type of <abbr class='c2c-text-hover' title='Part of double entry records, containing details of transactions for a specific item.'>account<\/abbr> or split the allowance across some or all of the other types.<\/p>\n\n\n\n<p>You can only pay \u00a34,000 into your Lifetime&nbsp;ISA&nbsp;in a tax year.<\/p>\n\n\n\n<p><strong>Example<\/strong>You could save \u00a315,000 in a cash&nbsp;ISA, \u00a32,000 in a stocks and shares&nbsp;ISA&nbsp;and \u00a33,000 in an innovative finance&nbsp;ISA&nbsp;in one tax year.<\/p>\n\n\n\n<p><strong>Example<\/strong>You could save \u00a311,000 in a cash&nbsp;ISA, \u00a32,000 in a stocks and shares&nbsp;ISA, \u00a33,000 in an innovative finance&nbsp;ISA&nbsp;and \u00a34,000 in a Lifetime&nbsp;ISA&nbsp;in one tax year.<\/p>\n\n\n\n<p>Your&nbsp;ISAs&nbsp;will not close when the tax year finishes. You\u2019ll keep your savings on a tax-free basis for as long as you keep the money in your&nbsp;ISA&nbsp;accounts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-you-can-include-in-your-isas\">What you can include in your&nbsp;ISAs<\/h2>\n\n\n\n<p>Cash&nbsp;ISAs&nbsp;can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>savings in bank and building society accounts<\/li><li>some&nbsp;<a href=\"https:\/\/www.gov.uk\/government\/organisations\/ns-i\">National Savings and Investments<\/a>&nbsp;products<\/li><\/ul>\n\n\n\n<p>Stocks and shares&nbsp;ISAs&nbsp;can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>shares in companies<\/li><li>unit trusts and investment funds<\/li><li><abbr class='c2c-text-hover' title='a large company or group of companies that is controlled together as a single organization.'>corporate<\/abbr> bonds<\/li><li>government bonds<\/li><\/ul>\n\n\n\n<p>You cannot transfer any non-ISA&nbsp;shares you already own into an&nbsp;ISA&nbsp;unless they\u2019re from an&nbsp;<a href=\"https:\/\/www.gov.uk\/tax-employee-share-schemes\">employee share scheme<\/a>.<\/p>\n\n\n\n<p>Lifetime&nbsp;ISAs&nbsp;may include either:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>cash<\/li><li>stocks and shares<\/li><\/ul>\n\n\n\n<p>Innovative finance&nbsp;ISAs&nbsp;include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>peer-to-peer loans &#8211; loans that you give to other people or businesses without using a bank<\/li><li>\u2018crowdfunding debentures\u2019 &#8211; investing in a business by buying its debt<\/li><\/ul>\n\n\n\n<p>You cannot transfer any peer-to-peer loans you\u2019ve already made or crowdfunding debentures you already hold into an innovative finance&nbsp;ISA.<\/p>\n\n\n\n<p>If you have questions about the tax rules for\u00a0ISAs, you can call the\u00a0<a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\/contact\/individual-savings-accounts-isa-enquiries\"><abbr title=\"Individual Savings Account\">ISA<\/abbr>\u00a0Helpline<\/a>.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">How to open an ISA<\/h1>\n\n\n\n<p>You can get an Individual Savings <abbr class='c2c-text-hover' title='Part of double entry records, containing details of transactions for a specific item.'>Account<\/abbr> (ISA) from:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>banks<\/li><li>building societies<\/li><li><abbr class='c2c-text-hover' title='\u2018place on the right of the account called\u2019. It can mean either increasing or decreasing for different accounts'>credit<\/abbr> unions<\/li><li><abbr class='c2c-text-hover' title='The general concept of a friendly society is that the membership contributes to a fund to be used for the welfare of the members or for their assistance when in need or distress. However, the term can cover societies with a wide range of differing activities and objectives including social purposes. The Taxes Acts provide for three categories of society: Unregistered friendly societies, Registered friendly societies, Incorporated friendly societies.'>friendly societies<\/abbr><\/li><li>stock <abbr class='c2c-text-hover' title='a person who buys and sells foreign money, shares in companies, etc., for other people \/ to arrange something such as a deal, agreement, etc. between two or more groups or countries'>brokers<\/abbr><\/li><li>peer-to-peer lending services<\/li><li>crowdfunding companies<\/li><li>other financial <abbr class='c2c-text-hover' title='an organization that exists to serve a public purpose such as education or support for people who need help'>institutions<\/abbr><\/li><\/ul>\n\n\n\n<p>Contact your provider directly for more information about how to open an\u00a0ISA\u00a0with them.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Further reading<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.gov.uk\/individual-savings-accounts\">https:\/\/www.gov.uk\/individual-savings-accounts<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>You can save tax-free with Individual Savings Accounts (ISAs). In the 2020 to 2021 tax year, the maximum you can save in\u00a0ISAs\u00a0is\u00a320,000 There are 4 types of&nbsp;ISA: cash&nbsp;ISAs stocks and shares&nbsp;ISAs innovative finance&nbsp;ISAs Lifetime&nbsp;ISAs You can put money into one <a href=\"https:\/\/thefinancialeducation.co.uk\/index.php\/2020\/05\/14\/isa-individual-saving-account-in-the-uk\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[19],"tags":[],"table_tags":[],"class_list":["post-807","post","type-post","status-publish","format-standard","hentry","category-405af"],"featured_image_src":null,"author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"education-hub-thumb":false},"uagb_author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"You can save tax-free with Individual Savings Accounts (ISAs). In the 2020 to 2021 tax year, the maximum you can save in\u00a0ISAs\u00a0is\u00a320,000 There are 4 types of&nbsp;ISA: cash&nbsp;ISAs stocks and shares&nbsp;ISAs innovative finance&nbsp;ISAs Lifetime&nbsp;ISAs You can put money into one Read More ...","_links":{"self":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=807"}],"version-history":[{"count":4,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/807\/revisions"}],"predecessor-version":[{"id":823,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/807\/revisions\/823"}],"wp:attachment":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=807"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/table_tags?post=807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}