Individual savings accounts
Produced in partnership with Tolley Guidance
Individual savings accounts

The following Private Client guidance note Produced in partnership with Tolley Guidance provides comprehensive and up to date legal information covering:

  • Individual savings accounts
  • Individual savings accounts
  • Who can invest in an ISA?
  • Repayment of funds in the same tax year
  • Balance transfers
  • Repair of invalid accounts
  • Inheriting ISAs of a deceased spouse or civil partner
  • Help to buy ISAs
  • Lifetime ISAs
  • Junior ISAs
  • more

Individual savings accounts (ISAs) are tax-free funds in which UK residents can hold a range of different investments. Originally, these were cash or stocks and shares products held by those over 16 years of age, but in November 2011 the Junior ISA was launched which allows tax-free cash accounts to be set up for the benefit of those under 16.

Innovative finance ISAs were introduced with effect from 6 April 2016.

Help to buy ISAs were introduced from 1 December 2015 as a tax-free cash account aimed at encouraging first-time buyers to save for a UK residential property. As well as receiving interest on the balance tax-free, the government will supplement the amount saved with a 25% bonus (up to a maximum of £3,000) when the property is purchased. These ISAs are closed to new savers with effect from 1 December 2019, although anyone with an existing help to buy ISAs can keep saving into the account until 30 November 2029. Those who accrued savings in a help to buy ISA before 6 April 2017 could transfer them to a lifetime ISA before 6 April 2018 in addition to making 2017–18 savings of up to £4,000 in the lifetime ISA.

Lifetime ISAs were introduced from 6 April 2017, with the aim of encouraging younger people to save flexibly throughout their lives, both for their retirement and for their first home. Like the