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Individual savings account definition

What does Individual savings account mean? An individual savings account (ISA) is a UK tax-advantaged wrapper used in private client, family and financial services practice to hold cash or investments so that income and gains are exempt from UK income tax and capital gains tax, with withdrawals tax-free. The regime is set out in the Individual Savings Account Regulations 1998 (as amended) and HMRC guidance; authorised ISA managers/providers are regulated by the FCA. Eligible UK-resident individuals may subscribe up to the annual HM Treasury limit across cash, stocks and shares and innovative finance ISAs, with separate rules for Lifetime ISAs (retirement/first home) and Junior ISAs. ISAs can...

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UK ISAs: tax treatment, eligibility, allowances, subscriptions, transfers, flexibility, inheritance, and rules for Lifetime, Junior, Help to Buy and Innovative Finance ISAs (with 2014–2027 updates)

Practice notes
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ISAs

ISAs are tax-free vehicles that allow UK residents to hold a variety of Investments. They began as cash or Stocks and Shares options for those aged over 16, but in November 2011 the Junior ISA was introduced, enabling tax-free cash accounts to be created for the benefit of under-16s. Innovative finance ISAs took effect from 6 April 2016. Help to buy ISAs launched on 1 December 2015 as a tax-free cash account aimed at helping first-time buyers save towards a UK residential property. In addition to receiving interest on the balance tax-free, the government will boost 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 from 1 December 2019, although anyone with an existing help to buy ISA can keep saving into it until 30 November 2029. Those who had built up savings in a help to buy ISA before 6 April 2017 could transfer them to a lifetime ISA before 6 April 2018, while also making 2017–18 savings of up to £4,000 into the lifetime ISA...

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Web page updated on 22/05/2026

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