ISA UK – Full Guide [Year], Learn the Best Deals, Which Banks You Should Use and More!

By | Last Updated: 14th September 2019 | This post may contain Affiliate Links

ISAs can be ideal if you’re planning to save money and are looking to get tax-free interest at the same time.

This UK ISA help guide features an extensive range of informative articles, money tips, financial tricks and more! Remember, our team are frequently searching for the best ‘deals’ and ‘offers’ from British banks and building societies, you’ll find them in this section.

From regular cash ISAs to Lifetime ISAs, Help to Buy ISAs and lots more! With lots of options available, there’s never been a better time to consider which one might be good for you.

A British ISA can help in lots of situations, from saving money to buy a first home, a new car, holidays, house improvements and more! So, what are you waiting for? Find out further information and get started today!

What is an ISA?

In England, ISAs are a popular way to ‘save money’ and potentially get tax-free interest at the same time. There official name is an Individual Savings Account. Usually money is transferred into an ISA from a general current account, this will normally have money from any income or salary earned (after-tax has been paid).

There’s a ‘limit’ during each tax year of how much money can be put into a Cash ISA, as of 2018/2019 its £20,000.

ISAs were originally introduced on the 6th of April 1999, they replaced the Personal Equity Plans and the Special Savings Accounts. Today, there are a few types of UK ISAs, these are:

Please click on one of the links above to learn more.

Remember most people like to use UK ISAs because of the tax treatment. Typically, ‘most’ ISAs are not subject to income tax. There’s usually no need to report any interest to HMRC as its not taxable income. Nevertheless, some cash or investments which are held in ISAs can be subject to Inheritance Tax when the account holder dies. This normally occurs if their estate is valued above the IHT ‘nil-rate’ band.

Did you know? Since 2013 it has become possible to hold ‘AIM-listed shares’ in a stocks and shares ISA, some of which qualify for business relief.

You may ask what is AIM? AIM is the London Stock Exchange’s international market for small growing businesses. It’s one of the most successful growth markets in the world, it was originally launched in 1995 and over 3,500 business have chosen to join AIM. It typically focuses on ‘companies of tomorrow’ who require early stage, venture and capital investment.

When done in this way, a stocks and shares ISA portfolio consisting of this type of securities can be ‘gifted’ without being subject to Inheritance Tax. Only if the ‘qualifying securities’ are held for at least two years before the death.

As you can see, there’s a lot to think about when it comes to savings in England. It’s always recommended to seek professional financial advice, should you be unsure which route to take. Remember, we all have different circumstances, so what may be right for one person, may not be for another. As this website is written as a ‘general guide only’, only you can 100% decide, what is correct for your situation.

ISA Frequently Asked Questions

Who can open an ISA?
Pretty much anybody over the age of 18 can open an ISA account in the UK. You’ll need to start the application via your chosen banks internet website or visit a local branch in-person. Our team are always on the ‘look out’ for best offers and deals in England. So why not visit our ISA deals section first, to compare providers.

Do you need Documentation or ID?
This ‘depends’, if you’re opening an ISA with your current bank, you normally won’t need any additional ID. However, if you’re using a provider in which you have no banking history with, then you’ll most likely need to verify who you are. This tends to be a ‘Name ID’ such as a passport, driving licence or birth certificate. You’ll also need an ‘Address ID’, this can be an energy bill, bank statement, council tax bill, mobile phone bill and so on. If your provider asks for identification, your account won’t be ‘live’ until this has been fulfilled and accepted.

ISA Account

What is the ISA Allowance for 2018/2019?
During the 2018 / 2019 tax year, you can put into a Cash ISA a maximum of £20,000.

Can a Child open an ISA?
In the UK, the parent or legal guardian of a child may open an ISA on their behalf. Once the child reaches 18-years-old, they will have ‘full access’ to the money. Please visit our Junior ISA page for further information.

What’s the best ISA for Investments?
It depends on what type of investment you’re looking at making. Typically for individual stocks and shares, corporate and government bonds, investment trusts, unit trusts, open ended investment companies and exchange-traded funds, Cash, Stock and Shares ISAs tends to be the one people opt for.

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