ISA FAQs

Click here to see Junior ISA FAQs

1. What type of ISA can I open with ii?

The ii Shares ISA is a Stocks and Shares ISA. You can hold UK, US and European equities, investment trusts, bonds/gilts and funds including Exchange Traded Funds (ETFs). You can also hold cash in your Shares ISA, however currently no interest is paid on this cash.

2. Who can open an ii ISA?

Anyone who, at the time of their application, is aged 18 or over and resident in the UK is eligible to open an ISA.  Alternatively you can be, or be married to, a Crown employee living overseas.

A Crown employee is someone who is employed by HM Government whose duties of employment are of a public nature and whose salaries are paid out of public funds. Crown employees include HM armed forces, civil servants and diplomats.

3. How do I open an ISA with ii?

Opening an ISA with ii takes just a few minutes.

If you don’t already have an account with us get started here

If you are already a customer of ours, Just log in to your account and click on ‘Add account’

When applying for an ISA you will need to have your National Insurance Number to hand.  (You can proceed without it, but it would mean you completing at a later date in order to keep the ISA active.)

4. What is the current ISA allowance?

The ISA allowance for tax year 2017/18 is £20,000.

Please bear in mind that you can only subscribe to one of each type of ISA in any one tax year, and the annual subscription limit covers payments to all ISAs in that tax year.

For a Junior ISA, the 2017/18 allowance is £4,128.  

(A Junior ISA holder may, from age 16 also subscribe to a Cash ISA)

5. Do I have to invest my ISA allowance for it to count for the current tax year?

No, you only have to have paid in the money to your ISA before the end of the tax year for it to count as a subscription in that year. You’re then free to invest it as and when appropriate.

6. Do I have to pay-in my annual ISA allowance all in one go?

No, you can subscribe up to the maximum ISA allowance within any one tax year as and when you wish. You could, for example, set up a regular credit whereby we will collect money automatically from your debit card each month on your chosen date. You can then choose to use our monthly Regular investment service  to make your share purchases.

7. How can I pay into my ISA?

The easiest way to pay in is via the debit card you have registered with us.

There are other methods, such as a transfer from your bank account or sending us a cheque but these can take longer to be credited to your account. You can also transfer money from your trading account into your ISA.

To pay in with your debit card, log in to your account and select the ‘Fund/Withdraw’ tab:

  • Select the ‘Source Of Funds’ as your Registered Debit Card
  • Select the ‘Target For Funds’ as your ISA
  • Enter the amount and click on Submit

Your total ISA subscription to date will be updated and displayed at the top of your ISA  “My Holdings tab”.. You’ll also see how much remains of the current tax year allowance although do be aware that this assumes you have not subscribed to any other ISA.

To set up a regular payment into the JISA, click on the ‘Regular investments’ tab and follow the instructions in Step 1.  You can then follow step 2 to set up a regular, monthly, purchase if you wish.

8. Can I withdraw money from my ISA?

Yes, however our ISA is not classed as “flexible” so do bear in mind that you cannot replace it unless you still have sufficient unused annual allowance. For example, if you deposited your full allowance of £15,240 and then chose to withdraw £2,000, you cannot put this back into your ISA until the following tax year.

9. Can I transfer shares from my ii Trading Account into my ISA?

Unfortunately not, except for a maturing ShareSave scheme (see below).  HMRC does not allow the direct transfer of existing shares into an ISA

However you can sell shares held in your ii trading account and repurchase them in your ISA with a process known as ‘bed and ISA’. See our bed and ISA page

10. Can a ‘Bed & ISA’ also be used for Unit Trusts and OEICs?

The Bed & ISA process cannot be used for funds. If you wish to move a fund holding from your Trading Account into your ISA, you would have to place 2 separate orders. First sell the fund from your Trading Account. Once the cash from the proceeds have settled, assuming you have sufficient ISA allowance remaining, you can then move the cash from your Trading Account to your ISA and place the order to repurchase the fund.

11. Can Sharesave Schemes be transferred into my ISA?

Yes, providing you send the appropriate paperwork to accompany this. You will need to send us the letter from the Sharesave Scheme provider confirming the date of maturity along with your instruction. The shares can then be transferred directly into an ISA any time up to 90 days without selling and buying them back. Please note that this still affects your ISA subscription.

12. How do I transfer in ISAs from different ISA Managers?

You can transfer an existing Shares or Cash ISA to ii.

Once you have set up your ISA with ii, complete your existing ISA Manager’s transfer authority and sent it to us.  We’ll arrange the transfer from there on.  Read more about transferring an ISA to ii

13. Can I use an Additional Permitted Subscription with my ii ISA?

Yes, you an Additional Permitted Subscription from an existing ii ISA or transfer one from another provider.  If transferring from another provider please make sure to check with them for details of the process you will need to follow.

 

Junior ISA (JISA) FAQs

14. What is a Junior ISA?

Junior ISAs are tax-efficient savings accounts for children under the age of 18.  The account must be opened by the person who has parental responsibility.  

15. What is the annual allowance?

The annual allowance for the current 2017/18 tax year is £4,128. 

16. What can a JISA invest in?

They have the same choice of investment instruments as an adult ISA.

17. Can a child have a JISA and an ISA at the same time?

From the age of 16, a child with a JISA can also have a Cash ISA.  However, ii offers only a Shares ISA so this would need to be opened elsewhere.

18. How do I open a Junior ISA?

If you already hold an account with us you can add one a by logging in to your own account then clicking on the ‘Add Account’ tab.

If you are not yet a customer of ours you will need to first open a trading account in your name and then add the JISA as shown above.

There will be no separate account fee to hold a JISA us , as the account will be linked to your  account. As there is no separate JISA account fee, no commission credit is available for use in the JISA.

See our Charges for dealing rates, fees etc.

19. Can I open more than one JISA?

Yes, you can add a JISA for other children for whom you have parental responsibility.  Each JISA will be separately identified and assets in those accounts will belong to each child individually.

The maximum number of JISAs you can have linked to your personal account is 10.

20. Can I transfer an existing JISA to ii?

Yes. First add the JISA to your account then complete our transfer form and send it to us. We will then liaise with them to transfer assets to your ii JISA.

21. Can I transfer an existing Child Trust Fund account to an ii JISA?

Yes. First add the JISA to your account then complete our CTF transfer form and send it to us. We will then liaise with them to transfer assets to your ii JISA.

Although the CTF annual allowance is the same as a JISA, the CTF allowance runs birthday to birthday. On moving to a JISA, you then have use if the full JISA allowance in that tax year, regardless of any contributions made in the CTF on that same tax year.

22. How do I pay into a JISA?

The easiest way to pay in is via the debit card you have registered with us.  You can also set up a monthly payment from the bank account associated with your ii account, make individual transfers from your bank account as and when you wish, or send a cheque.

Having opened the account, log in and click on the ‘fund/withdraw tab.

To pay in with your debit card:

  • Select the ‘Source Of Funds’ as your Registered Debit Card
  • Select the ‘Target For Funds’ as your ISA
  • Enter the amount and click on Submit

The remaining JISA subscription will be updated and displayed at the top of your JISA portfolio page. The ‘available to subscribe’ figure assumes you have not subscribed to any other JISA.

To set up a regular payment into the JISA, click on the ‘Regular investments’ tab and follow the instructions in Step 1.  You can then follow step 2 to set up a regular, monthly, purchase if you wish.

23. Can I transfer money from my trading account into a JISA?

No. Because the JISA is held in our systems as a separate account you are not able to transfer funds from your trading account into an associated JISA.

24. Can anyone else pay into the JISA, apart from the person with parental responsibility?

Only the person with parental responsibility (and therefore the person who has opened the JISA) can pay into the account. We are unable to accept money from a debit card other than the one registered with the account it card. 

25. Can money be withdrawn from a JISA?

In normal circumstances, no.  All money paid into the J ISA belongs to the child and cannot be withdrawn until age 18, except in particular circumstances with the agreement of HMRC.

26. What happens when the child turns 18?

At age 18 the Junior ISA automatically rolls over into an Adult ISA in the now young adults’ own name. We will contact both the person with parental responsibility and the child with details ahead of their 18th birthday.

27. What happens to Subscriptions and Regular Investments in the account upon maturity?

Regular subscriptions will cease on maturity.  However, regular investments will continue to be made so long as there is sufficient cash in the account to make purchases. Where the dividend reinvestment option has been selected, reinvestment of incomes will continue.

28. Once converted to an ISA, can I use the full ISA allowance?

Yes.  The young adult now qualifies to have the full ISA allowance child for that tax year.  Any contributions made to the JISA during that tax year will, however count towards that allowance.