Expats in the UK, including children, can open an ISA with Edale instantly. The key features and application form are below.
Our Individual Savings Account (“ISA”) is an investment account that allows US Citizens who are UK taxpayers to contribute post-tax funds on an annual basis.
Online Account, Human US UK Advice
Open an online account. Access unbiased, expert advice.Why Open a Shares ISA with Edale If You’re a US Citizen and Live in the UK?
Optimise Your Tax Allowance & US-UK Tax Issues
Take advantage of the UK tax advantages of an Investment Savings Account (ISA). However, it requires a tailored approach for US citizens residing in the UK. With Edale’s by your side, we navigate you through the unique challenges while bringing ISA benefits to you. ISAs need special preparation for US citizens residing in the UK.
Financial advice to help Americans get these ISA benefits:
Advantages of an American Shares ISA with Edale:
- UK Tax Saving with Professional Guidance
- Exemptions of HMRC for income tax and capital gains tax on ISA investment.
- Collaborate with experts who have worked with US citizens on cross-border tax.
- Take advantage of lower income tax in the USA.
- Wealth accumulation that avoids capital gains tax through minimal chargeable events.
- Avoidance of IRS Pitfalls
- Avoid punitive taxes on PFICs by picking right investments.
- Support to file compliance forms with your US tax returns and report ISAs in FBAR filings.
- Payment Control and Cash Flow
- Allocate money effectively to investments without paying heavy transaction fees.
- Build a stable portfolio over time in a long-term financial plan.
- Personalised Investment Options
- Purchase single shares, bonds, or cash — no PFICs and IRS compliant.
- Access to human financial advice for you.
Why Choose Edale for a US ISA?
- US-UK Dual Tax Expertise
Edale’s financial planners help US residents to invest – and they understand the intricacies of US and UK taxation. - Holistic Financial Planning
Include ISAs as part of a long-term investment plan to maximise return and minimise tax. - Support Across Tax Bands
Build in the benefits for those in higher UK tax brackets or who qualify for additional foreign tax credits, so that the ISA structure adds value to your financial game.
Are You Ready to Open your ISA?
Open a Shares ISA for a UK resident who is American.
Optimise your investment portfolio and pay less in taxes (no UK taxes and optimised for US taxes).
Applications can be made online. Or speak to Edale to learn more about individual advice and financial planning.
You may get back less than you invest. ISAs involve risks to capital.
Adult ISA for US Persons
Accumulate wealth with a tax-advantaged account in the UK
- Easy peasy: Straightforward online account opening. Support from real people to invest in the right strategy.
- Avoid IRS Punitive Tax on PFICs: Shield your investments from unfavourable U.S. tax treatment on Passive Foreign Investment Companies (PFICs).
- US-UK Adviser Expertise: Access real-world guidance from advisers specializing in US-UK tax reporting to ensure compliance and maximize tax efficiency.
- Cost-Effective Cash Management: We allocate cash strategically to full shares, avoiding excessive dealing fee and optimising buy and hold.
Junior ISA for US Persons
Accounts for future generations
- Guardian/Parent opens an account and then selects Junior ISA account.
- Easy peasy: Straightforward online account opening. Support from real people to invest in the right strategy.
- Avoid IRS Punitive Tax on PFICs: Shield your investments from unfavourable U.S. tax treatment on Passive Foreign Investment Companies (PFICs).
- US-UK Adviser Expertise: Access real-world guidance from advisers specializing in US-UK tax reporting to ensure compliance and maximize tax efficiency.
- Cost-Effective Cash Management: We allocate cash strategically to full shares, avoiding excessive dealing fee and optimising buy and hold.
ISA Cost Illustration
ISA Cost Illustration
Assumptions
1. The average share price on the FTSE is assumed to be GBP 20.12.
2. A minimum trade value of GBP 100 is required for each trade as ISA rules only allow owning full shares and we aim to reduce the drag of dealing fees so accumulate cash to buy min £100 per trade for stocks.
3. Trading fees are calculated as 0.25% of the trade value, with a minimum of GBP 3 per order.
4. Platform fees are waived if trading commissions exceed the monthly platform fee. If only a lump sum is invested in month 1 and no trades occur in subsequent months, platform fees are applied for those months without trading commissions.
5. Advisory fees are calculated as 0.5% of the total annual investment.
6. Contributions must not exceed the annual ISA limit of GBP 20,000 for Adult ISA and GBP 9,000 for Junior ISA.
Information Regarding IBUKL JISA (Junior Individual Savings Account)
Edale advises ISAs on Interactive Broker ISA platform.
What is a Junior ISA and what benefits does it offer your child?
Junior ISAs (Individual Savings Accounts), or JISAs, were introduced as a replacement for Child Trust Funds (CTFs). A Junior ISA is a tax-free savings or investment account to save or invest in for your child. There are two types of Junior ISA: a Junior cash ISA that pays interest, and a Junior stocks and shares ISA that lets you invest in “qualifying instruments” such as stocks and shares, funds, etc. The interest on cash accumulates on a tax-free basis, as does income and capital gains made on investments.
A Junior stocks and shares ISA is not an investment in its own right. The best way to think of a Junior stocks and shares ISA is as a ‘wrapper’ with which you can shelter your child’s savings and investments from both Income Tax and Capital Gains Tax. The IBUKL Junior Stocks and Shares ISA lets you choose from a range of investments to invest in for your child (see below section 12 ‘What can I invest in for my child?’). You can select and manage your child’s IBUKL Junior Stocks and Shares ISA yourself or arrange for your financial advisor to do so on your behalf (see below section 9 ‘Can I appoint a financial advisor to manage, on a discretionary basis, my child’s IBUKL Junior Stocks and Shares ISA?’).
What ISA types are offered at IBUKL?
Interactive Brokers (U.K.) Limited (IBUKL) only offers stocks and shares ISAs (including, Junior Stocks and Shares ISA). IBUKL does not offer cash ISAs (including, Junior cash ISA).
Who is eligible for a Junior ISA?
Your child is eligible for a Junior ISA if they’re under the age of 18, and resident in the UK. You can also open a Junior ISA for your child if you are a crown employee serving overseas.
A child cannot hold both a CTF (Child Trust Fund) account and a Junior ISA. This is relevant to anyone under 18 who was born between 1 September 2002, when CTFs were introduced, and 3 January 2011 when they came to an end. If your child holds a CTF account, you cannot open an IBUKL Junior ISA since IBUKL does not support CTF transfers, other Junior ISA providers may accommodate your Junior ISA request.
How many Junior ISAs can a child have?
A child can have no more than one Junior cash ISA and one Junior stocks and shares ISA at any one time (don’t have to be with the same provider). A child cannot hold both a CTF (Child Trust Fund) account and a Junior ISA.
Who can open a Junior ISA and who is the registered contact?
You can open a Junior ISA for a child if you’re their parent or legal guardian. The parent or legal guardian opening the account will be the ‘registered contact’, but the money will not be accessible to them and will always belong to the child. The child normally won’t be able to access the money until their 18th birthday, at which point their Junior ISA is converted into an ‘adult’ ISA.
As the registered contact for a Junior ISA, you are the only person authorised to make decisions about the management of the account. You’ll also need to keep IBUKL informed if the child’s personal details change, e.g., if they change their name, address, contact number, etc.
How do I change the registered contact for an IBUKL Junior Stocks and Shares ISA?
You should use our change of registered contact form (via Client Portal) to change the registered contact for an IBUKL Junior Stocks and Shares ISA. The existing registered contact must sign this application to authorise this change unless where certain exemptions apply.
IBUKL will not allow a child to be the Registered Contact upon their 16th birthday, other ISA providers may allow this (i.e., once the child reaches the age of 16, the child can apply to become the Registered Contact).
For more information on how to change a registered contact please contact our dedicated ISA Support team who are available 8am to 6pm GMT Monday to Friday, excluding public holidays (see below section ‘What if I have additional questions?’)
Who owns the Junior ISA and what happens when the child turns 18?
All payments made into a Junior ISA belong to the child (i.e., all payments made into the Junior ISA are a gift to the child and as such cannot be repaid to the subscriber if at a later date the subscriber changes their mind). The parent or guardian who opened the Junior ISA acts as the registered contact, but they can’t access the money once it has been deposited, unless there are exceptional circumstances (see below section 11 ‘Can I make withdrawals from a Junior Stocks and Shares ISA?’). When your child turns 18, the IBUKL Junior Stocks and Shares ISA will automatically become an ‘adult’ IBUKL Stocks and Shares ISA (i.e., when the child turns 18, account ownership is automatically transferred to them). As an adult, they’ll become the account holder, responsible for managing their account and able to withdraw monies. For more information on how this transfer of control (from the registered contact to the child (upon the child’s 18th birthday)) works, please contact our dedicated ISA Support team who are available 8am to 6pm GMT Monday to Friday, excluding public holidays (see below section 29 ‘What if I have additional questions?’)
Can you lose your child’s money paid into a Junior Stocks and Shares ISA?
The value of investments your child holds in the IBUKL Junior Stocks and Shares ISA and the income received from them can fall as well as rise. As a result, you may get back less than you invested in for your child. Past performance is not an indication of future performance, and some investments need to be held for the long term to achieve a return. The IBUKL Junior Stocks and Shares ISA is an execution only service, we do not provide investment advice. If you need advice about whether an investment is suitable, you need to consult a suitably qualified financial advisor.
Can I appoint a financial advisor to manage, on a discretionary basis, my IBUKL Junior Stocks and Shares ISA?
Yes, you can appoint a financial advisor to manage the IBUKL Junior Stocks and Shares ISA on your behalf. Click this link for additional details.
Can I trade on margin under the IBUKL Junior Stocks and Shares ISA?
No. You can only open an IBUKL Junior Stocks and Shares ISA under a GBP cash account type. A cash account requires that all transactions are made with available cash or long positions.
Can I make withdrawals from a Junior Stocks and Shares ISA?
No, unless exceptional circumstances exist. All payments made into the IBUKL Junior Stocks and Shares ISA are a gift to the child and so cannot normally be withdrawn until the child turns 18. NB. withdrawals are permitted if the child is terminally ill or has died in accordance with the ISA Regulations.
What can I invest in for my child?
Under a Junior stocks and shares ISA you can invest in any of the following investments (also known as ‘qualifying investments’):
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Shares;
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Securities issued by Companies;
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Recognised UCITS;
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Mutual Funds;
-
Bonds;
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Depository Receipts, American Depository Receipts and American Depository Shares.
What exchanges does IBUKL support?
HMRC recognised exchanges supported by IBUKL:
| Country | Exchange |
|---|---|
| Australia | The Australian Stock Exchange (and any of its stock exchange subsidiaries) |
| Austria | Vienna Stock Exchange |
| Belgium | NYSE Euronext Brussels |
| Canada |
Toronto Stock Exchange Montreal Stock Exchange Toronto Venture Exchange (TSX Venture Exchange) |
| France |
MATIF MONEP |
| Germany |
Frankfurt Stock Exchange Stuttgart Stock Exchange |
| Hong Kong | Hong Kong Stock Exchange |
| Italy | Italian Stock Exchange (Borsa Italia) |
| Japan |
Tokyo Stock Exchange Osaka Stock Exchange |
| Lithuania | NASDAQ OMX Vilnius |
| Mexico | Mexico Stock Exchange |
| Poland | Warsaw Stock Exchange |
| Singapore | Singapore Exchange Limited |
| South Korea | Korea Exchange |
| Spain | Spanish Stock Exchange (Bolsa de Valores in Madrid) |
| Switzerland | Swiss Stock Exchange (SIX Swiss Exchange) |
| United Kingdom | London Stock Exchange |
| United States of America |
BATs Exchange Inc Chicago Board Options Exchange Chicago Stock Exchange International Securities Exchange National Stock Exchange New York Stock Exchange NYSE ARCA NASDAQ OMX PHLX NASDAQ |
What is the Junior ISA Allowance for 2023/2024 tax year?
Tax year runs from 6 April to the following 5 April. Each tax year’s Junior ISA subscription limit is specific to that year and can be checked on the HMRC website.
For each tax year, you can check (via the funding page in Client Portal) how much you have subscribed to your child’s IBUKL Junior Stocks and Shares ISA and the maximum amount that you can contribute to your child’s IBUKL Junior stocks and shares ISA in that tax year, assuming you have not contributed to another Junior ISA away from us.
For the 2023/24 tax year, the Junior ISA annual subscription limit is £9,000. This is a combined annual limit across both types of Junior ISA: cash, and stocks and shares. The subscription limit can be split in any way between cash, and stocks and shares Junior ISAs each tax year.
How do I make subscriptions to my IBUKL Junior Stocks and Shares ISA?
You can make one-off payments (wire transfers deposits) as and when you choose, but the combined total of all payments (or subscriptions) must not exceed any given annual tax year allowance (see section 14. What is the 2023/2024 Junior ISA Allowance?).
We accept wire transfers only, and there is a minimum subscription amount of £1. Your child’s IBUKL Junior Stocks and Shares ISA can only have GBP cash. Although other Junior ISA providers might have different terms, only parent or legal guardian can pay into your child’s Junior ISA with IBUKL.
What happens if I exceed my child’s Junior ISA allowance?
If you have accidentally paid too much into your child’s Junior ISAs your child won’t get any tax relief on the excess payments you’ve made. The Junior ISA allowance is a combined annual limit across both types of Junior ISA: cash, and stocks and shares.
What should I do if I exceed my child’s Junior ISA allowance?
In the event you oversubscribe to your child’s Junior ISA (in other words your child’s Junior ISA annual allowance was exceeded), you should not attempt to correct the mistake by withdrawing the excess funds from a Junior ISA (including, but not limited to, your IBUKL Stocks and Shares ISA). Instead, you should call HMRC’s ISA helpline to explain the situation and inform them about the oversubscription. HMRC will advise you on the next steps. NB. The Junior ISA allowance for the tax year 2023/2024 is GBP 9,000 (this is a combined limit across both types of Junior ISA: cash, and stocks and shares).
What is the annual fee for the IBUKL Junior Stocks and Shares ISA?
There is no annual Junior ISA fee at IBUKL. Other costs and charges apply, see below section 19 for more information.
What are the charges for the IBUKL Junior Stocks and Shares ISA?
£1 per month minimum activity fee. One free withdrawal per month. Thereafter, £7 withdrawal fee is applicable.
Click on the link for an overview of our commissions:
https://www.interactivebrokers.co.uk/en/index.php?f=39753&p=stocks
How do I transfer my child’s Junior Stocks and Shares ISA from my current ISA manager to IBUKL?
You will need to submit a transfer instruction to us (via the transfer & pay funding page in Client Portal), and if, in IBUKL’s discretion IBUKL decides to accept the transfer, IBUKL will instruct your existing ISA manager to transfer the investments (where IBUKL supports such investments) and/or cash into your child’s IBUKL Junior Stocks and Shares ISA. Where IBUKL does not support all the investments held at your existing ISA Manager, you can either liquidate these investments yourself prior to submitting your transfer instruction to IBUKL via Client Portal (any cash proceeds of such liquidation will be transferred into your child’s IBUKL Junior Stocks and Shares ISA) or you can instruct IBUKL (as part of your transfer instruction via Client Portal) to do so on your behalf. NB. IBUKL does not accept the transfer of a Child Trust Fund (CTF) over to a Junior Stocks and Shares ISA, other Junior ISA providers might support such transfer service.
Transfers between an ‘adult’ ISA and Junior ISA are not permitted.
How do I transfer a Junior ISA out to another provider?
Any transfer out request from must be requested via the receiving ISA provider, the requesting ISA provider will email a client-signed transfer form to isa-transfer@interactivebrokers.com for processing. Please contact the receiving ISA Provider for guidance on their processes and required documents.
What are the Transfer Charges?
We do not charge for transfers (the transferring ISA manager may charge you for transferring investments or cash proceeds to us).
Can I cancel my IBUKL Junior Stocks and Shares ISA?
You have a legal right to cancel your child’s IBUKL Junior Stocks and Shares ISA if you change your mind but there are time limits on doing so, see below section 24 for more information.
How can I cancel my child’s IBUKL Junior Stocks and Shares ISA?
If you want to cancel your child’s IBUKL Junior Stocks and Shares ISA, you must do so within 14 days from the date you receive our email confirming the establishment of your child’s IBUKL Junior Stocks and Shares ISA (a cancellation must be requested from the Client Portal).
Cancellation rights will also apply to the receipt of transfer payments. You have 14 days from the date you receive our email acknowledging the transfer to exercise your right to cancel (a cancellation must be requested from the Client Portal). NB. If you cancel the transfer of your child’s Junior Stocks and Shares ISA from another ISA manager to IBUKL, that ISA manager may not agree to accept the Junior Stocks and Shares ISA back. This may result in that Junior Stocks and Shares ISA being closed, and the tax benefits being lost.
How safe is your child’s IBUKL Junior Stocks and Shares ISA?
IBUKL is authorised and regulated by the Financial Conduct Authority (FCA), and is approved by HMRC to act as an ISA manager (including in respect of stocks and shares ISAs).
Under our client terms, and in accordance with the FCA rules relating to client money and assets (Assets), IBUKL will be responsible for holding and protecting your child’s Assets. IBUKL is required to separate your child’s Assets from its own resources. IBUKL is not permitted to use your child’s Assets to carry out its business activities.
In the unlikely event that IBUKL became insolvent, an administrator would be appointed to return your child’s money/assets to you. If there is any shortfall, eligible claims will be covered by the UK Financial Services Compensation Scheme (“FSCS”). The FSCS is an independent body set up by the UK Government to pay compensation if a UK firm, such as IBUKL, is in default and cannot meet any valid claims against it. FSCS claims are limited to £85,000 per client. Please note, the FSCS applies to designated investments and may not cover all investments or transactions (and in particular these protections don’t apply to investment losses). For more information on the FSCS see www.fscs.org.uk.
How can I file a complaint with IBUKL?
Clients are actively encouraged to use the WebTicket system for prompt attention.
A copy of our Complaints Procedure is available here: https://www.interactivebrokers.com/en/index.php?f=292. You can also direct your ISA specific complaints via email to isa@interactivebrokers.co.uk (Please note that in order to ensure that your complaint is flagged and given the required attention, we kindly asks you to state “COMPLAINT” in the subject header field of the email).
Are Corporate Actions allowed under my child’s IBUKL Junior Stocks and Shares ISA?
Allowed to participate but cannot exceed the annual Junior ISA subscription limit. If it were to exceed the subscription limit, the shares should be transferred to a non-ISA account (see above sections 17 ‘What should I do if I exceed my child’s Junior ISA allowance?’.
FX Handling and the IBUKL Junior Stocks and Shares ISA
We will automatically convert currencies when trading non-GBP denominated securities. To do this, we will engage in “spot” currency transactions on your behalf in order to settle your buy orders or convert the proceed of a sell order. We will base the exchange rate off the spot exchange rate at the time of trade 0.03% fee.
The below example illustrates the cost in GBP of a $1,000 USD Trade
Example GBP/USD Spot Rate: 1.3432/1.3433
| Order Type | FX Conversion Rate inc 0.03% fee | Cost of $1000 USD Trade |
|---|---|---|
| Buy | 1.3430 | £744.61 |
| Sell | 1.3435 | £744.31 |
Can I allow my child’s IBUKL Junior Stocks and Shares ISA to be used as security for any borrowing?
No. In accordance with HMRC regulations, any investments and/or cash within your child’s IBUKL Junior Stocks and Shares ISA will be, and must remain, completely beneficially owned by your child and you must not grant any rights or interests over the investments to any other person (for example, you must not allow your child’s investments to be used as security for any borrowing).
Can my child’s IBUKL Junior Stocks and Shares ISA participate in the Interactive Brokers Stock Yield Enhancement Program (SYEP)?
No. In accordance with HMRC regulations, IBUKL Junior ISA holders are not eligible to participate in the SYEP.
What if I have additional questions?
Our client services team are on hand to help via phone or email. If you have any questions about your IBUKL Stocks and Shares ISA, please contact our dedicated ISA Support team who are available 8am to 6pm GMT Monday to Friday, excluding public holidays.
Last updated on October 25, 2024
Information Regarding IBUKL ISA (Individual Savings Account)
Edale advises ISAs on Interactive Broker ISA platform.
What is an ISA and what benefits does it offer me?
An ISA (Individual Savings Account) is a tax-free savings or investment account that gives you the opportunity to save or invest a certain amount of money every year, without having to pay tax on any growth in your investments or savings. There are 4 types of adult ISA available (stocks & shares ISA, cash ISA, innovative finance ISA , and lifetime ISA). The interest on cash accumulates on a tax-free basis, as does income and capital gains made on investments.
A stocks and shares ISA lets you invest in “qualifying instruments” such as stocks and shares, funds, etc. A stocks and shares ISA is not an investment in its own right. The best way to think of a stocks and shares ISA is as a ‘wrapper’ with which you can shelter your savings and investments from both Income Tax and Capital Gains Tax. The IBUKL Stocks and Shares ISA lets you choose from a range of investments to invest in (see below section 10 ‘What can I invest in?’). You can select and manage your IBUKL Stocks and Shares ISA yourself or arrange for your financial advisor to do so on your behalf (see below section 8 ‘Can I appoint a financial advisor to manage, on a discretionary basis, my IBUKL Stocks and Shares ISA?’).
When deciding which type of ISA to open, you should consider the pros and cons of each so that you can choose the type that best fits with your personal needs, circumstances and financial goals. We offer stocks and shares ISAs only.
Tax treatments depend on your individual circumstances and may change in the future.
What ISA types are offered at IBUKL?
Interactive Brokers (U.K.) Limited (IBUKL) only offers stocks and shares ISAs (including, Junior Stocks and Shares ISA). IBUKL does not offer cash ISAs (including, Junior cash ISA).
Who is eligible for an IBUKL Stocks and Share ISA?
In accordance with HMRC regulations, any individual who is a resident for tax purposes in the UK and over the age of 18 is eligible to open a stocks and share ISA.
Click on the link for additional details: https://www.gov.uk/tax-foreign-income/residence
How many ISAs can I have?
There is no overall limit on the number of ISA accounts, but you can only subscribe to one type of each ISA in the same tax year. This means if you have already subscribed to a Stocks & Shares ISA with a different provider in the current tax year, you cannot also subscribe to an Interactive Brokers Stocks & Shares ISA.
What is a flexible Stocks and Shares ISA?
ISA flexibility refers to whether you’re able to withdraw from your ISA without affecting your annual allowance. A flexible stocks and shares ISA allows the individual to withdraw funds from their stocks and shares ISA and put them back into it, within the same tax year, without affecting their annual ISA allowance.
Does IBUKL offer a flexible Stocks and Shares ISA?
No, an IBUKL Stocks and Shares ISA isn’t flexible. That means you can take money out, but it’ll count towards your annual ISA allowance if you pay it back in the same tax year.
https://www.gov.uk/tax-foreign-income/residence
Can you lose your money paid into a Stocks and Shares ISA?
The value of investments you hold in your IBUKL Stocks and Shares ISA and the income received from them can fall as well as rise. As a result, you may get back less than you invested. Past performance is not an indication of future performance, and some investments need to be held for the long term to achieve a return. The IBUKL Stocks and Shares ISA is an execution only service, Interactive Brokers does not provide investment advice. If you need advice about whether an investment is suitable, you need to consult a suitably qualified financial advisor.
Can I appoint a financial advisor to manage, on a discretionary basis, my IBUKL Stocks and Shares ISA?
Yes, you can appoint a financial advisor to manage your IBUKL Stocks and Shares ISA on your behalf. Click on the link for additional details:
https://www.ibkrguides.com/clientportal/createlinkedaccountunderadvisorbroker.htm
Can I trade on margin under the IBUKL Stocks and Shares ISA?
No. You can only open an IBUKL Stocks and Shares ISA under a GBP cash account type. A cash account requires that all transactions are made with available cash or long positions.
What can I invest in?
Under a stocks and shares ISA you can invest in any of the following investments (also known as ‘qualifying investments’):
- Shares;
- Securities issued by Companies (Stocks);
- Recognised UCITS;
- Mutual Funds;
- Bonds;
- Depository Receipts, American Depository Receipts and American Depository Shares.
Please note, as of now bond trading in ISA accounts are not permitted.
What exchanges does IBUKL support?
HMRC recognised exchanges supported by IBUKL:
| Country | Exchange |
|---|---|
| Australia | The Australian Stock Exchange (and any of its stock exchange subsidiaries) |
| Austria | Vienna Stock Exchange |
| Belgium | NYSE Euronext Brussels |
| Canada |
Toronto Stock Exchange Montreal Stock Exchange Toronto Venture Exchange (TSX Venture Exchange) |
| France |
MATIF MONEP |
| Germany |
Frankfurt Stock Exchange Stuttgart Stock Exchange |
| Hong Kong | Hong Kong Stock Exchange |
| Italy | Italian Stock Exchange (Borsa Italia) |
| Japan |
Tokyo Stock Exchange Osaka Stock Exchange |
| Lithuania | NASDAQ OMX Vilnius |
| Mexico | Mexico Stock Exchange |
| Poland | Warsaw Stock Exchange |
| Singapore | Singapore Exchange Limited |
| South Korea | Korea Exchange |
| Spain | Spanish Stock Exchange (Bolsa de Valores in Madrid) |
| Switzerland | Swiss Stock Exchange (SIX Swiss Exchange) |
| United Kingdom | London Stock Exchange |
| United States of America |
BATs Exchange Inc Chicago Board Options Exchange Chicago Stock Exchange International Securities Exchange National Stock Exchange New York Stock Exchange NYSE ARCA NASDAQ OMX PHLX NASDAQ |
What is the ISA Allowance for 2023/2024 tax year?
Tax year runs from 6 April to the following 5 April. Each tax year’s ISA subscription limit is specific to that year and can be checked on the HMRC website.
For the 2023/24 tax year the annual ISA allowance is £20,000 per person. Any of the ISA allowance that goes unused in the current tax year cannot be rolled over to the subsequent tax year. You can divide this cash allowance across multiple ISAs, provided that not more than 1 of each type of ISA is subscribed to in any given tax year. NB. If you are already subscribed to another stocks and shares ISA in the current tax year, you are not permitted to subscribe to our stocks and shares ISA for the remainder of the tax year.
For each tax year, you can check (via the funding page in Client Portal) how much you have subscribed to your IBUKL Stocks and Shares ISA and the maximum amount that you can contribute to your IBUKL stocks and shares ISA in that tax year, assuming you have not contributed to another ISA away from us.
How do I make subscriptions to my IBUKL Stocks and Shares ISA?
You can make one-off payments (wire transfers deposits) as and when you choose, but the combined total of all payments (or subscriptions) must not exceed any given annual tax year allowance (see section 12. What is the ISA Allowance for 2023/2024 tax year?).
Interactive Brokers accept wire transfers only, and there is a minimum subscription amount of £1. Your IBUKL Stocks and Shares ISA can only have GBP cash.
Can I fund my ISA via Internal Transfer from my existing account?
Yes, as long as the existing account is an individual account in the same name, an internal transfer can be requested to fund your ISA account. Internal transfer from non-ISA to ISA will be considered as a contribution and only allowed if within the yearly contribution limits. Positions cannot be transferred between these accounts.
Can I check the tax-year to date contributions I have made into my ISA account?
Yes, if you create a deposit notification for a fund transfer, before selecting “Get Transfer Instructions” on the final page there is a contribution tracker showing how much you have contributed so far during the current tax year.
What happens if I exceed my ISA allowance?
If you have accidentally paid too much into your ISAs you won’t get any tax relief on the excess payments you’ve made. The ISA allowance is a combined annual limit across all adult ISA types (e.g. stock & shares ISA, cash ISA, innovative Finance ISA , and lifetime ISAs).
What should I do if I exceed my ISA allowance?
In the event you oversubscribe to your ISA (in other words your ISA annual allowance was exceeded), you should not attempt to correct the mistake by withdrawing the excess funds from an ISA (including, but not limited to, your IBUKL Stocks and Shares ISA). Instead, you should call HMRC’s ISA helpline to explain the situation and inform them about the oversubscription. HMRC will advise you on the next steps. NB. The ISA allowance for the tax year 2023/2024 is GBP 20,000 (this is a combined limit across all 4 types of ISA (stock & shares ISA, cash ISA, innovative finance ISA , and lifetime ISAs).
What is the annual fee for the IBUKL Stocks and Shares ISA?
There is no annual ISA fee at IBUKL. Other costs and charges apply, see below section 19 for more information.
What are the charges for the IBUKL Stocks and Shares ISA?
-
£3 per month minimum activity fee. (e.g. if you generate 2 pounds of commission in a particular month, you would be charged the remaining balance of 1 pounds as a minimum activity fee. Generate 3 or more pounds in consolidated commission from linked accounts in a month and there will be no fee.)
-
One free withdrawal per month. Thereafter, £7 withdrawal fee is applicable.
Click here for an overview of our commissions:
https://www.interactivebrokers.co.uk/en/index.php?f=39753&p=stocks
What transactions are allowed and what transactions are not allowed in an ISA?
a) Example of allowed transactions
An individual subscribes £15,000 into a stocks and shares ISA, £3,000 into a cash ISA and £2,000 into a lifetime ISA. No more than 1 of each type of ISA was subscribed to in the tax year, and the annual ISA allowance of £20,000 was not exceeded.
b) Example of disallowed transactions
An individual subscribes £10,000 into one stocks and shares ISA, £2,000 into another stocks and shares ISA, and the remaining £8,000 into a cash ISA. While the individual did not exceed the annual ISA allowance of £20,000, they subscribed funds into more than 1 stocks and shares ISA.
How do I transfer my stocks and shares ISA from my current ISA manager to IBUKL?
Position/in-specie transfers are now available from certain ISA managers. When requesting a transfer in the client portal supported providers will have a position transfer option within the form.
You will need to submit a transfer instruction to Interactive Brokers (go to Client Portal, Transfer & Pay, then Transfer Existing ISA), and if, in IBUKL’s discretion IBUKL decides to accept the transfer, IBUKL will instruct your existing ISA manager to transfer your investments (where IBUKL supports such investments) and/or cash into your IBUKL Stocks and Shares ISA. Where IBUKL does not support all your investments held at your existing ISA Manager, you can either liquidate these investments yourself prior to submitting your transfer instruction to IBUKL via Client Portal (any cash proceeds of such liquidation will be transferred into your IBUKL Stocks and Shares ISA) or you can instruct IBUKL (as part of your transfer instruction via Client Portal) to do so on your behalf.
Interactive Brokers do not support partial transfers, only full account transfer requests can be made.
How do I transfer an ISA out of IBUKL to another provider?
Any transfer out request from IBUKL must be requested via the receiving ISA provider. The requesting broker can email a client-signed transfer form to isa-transfer@interactivebrokers.com or the client may attach a completed form to a web ticket.
What are the Transfer Charges?
Interactive Brokers do not charge for transfers (the transferring ISA manager may charge you for transferring investments or cash proceeds to us).
Can I cancel my IBUKL Stocks and Shares ISA?
You have a legal right to cancel your IBUKL Stocks and Shares ISA if you change your mind but there are time limits on doing so, see below section 25 for more information.
How can I cancel my IBUKL Stocks and Shares ISA?
If you want to cancel your IBUKL Stocks and Shares ISA, you must do so within 14 days from the date you receive our email confirming the establishment of your IBUKL Stocks and Shares ISA (a cancellation must be requested from the Client Portal).
Cancellation rights will also apply to the receipt of transfer payments. You have 14 days from the date you receive our email acknowledging the transfer to exercise your right to cancel (a cancellation must be requested from the Client Portal). NB. If you cancel the transfer of your stocks and shares ISA from another ISA manager to IBUKL, that ISA manager may not agree to accept the stocks and shares ISA back. This may result in that stocks and shares ISA being closed, and the tax benefits being lost.
How safe is your IBUKL Stocks and Shares ISA?
IBUKL is authorised and regulated by the Financial Conduct Authority (FCA), and is approved by HMRC to act as an ISA manager (including in respect of stocks and shares ISAs).
Under our client terms, and in accordance with the FCA rules relating to client money and assets (Assets), IBUKL will be responsible for holding and protecting your Assets. IBUKL is required to separate your Assets from its own resources. IBUKL is not permitted to use your Assets to carry out its business activities.
In the unlikely event that IBUKL became insolvent, an administrator would be appointed to return your money/assets to you. If there is any shortfall, eligible claims will be covered by the UK Financial Services Compensation Scheme (“FSCS”). The FSCS is an independent body set up by the UK Government to pay compensation if a UK firm, such as IBUKL, is in default and cannot meet any valid claims against it. FSCS claims are limited to £85,000 per client. Please note, the FSCS applies to designated investments and may not cover all investments or transactions (and in particular these protections don’t apply to investment losses). For more information on the FSCS see www.fscs.org.uk.
How can I file a complaint with IBUKL?
Clients are actively encouraged to use the WebTicket system for prompt attention.
A copy of our Complaints Procedure is available here https://www.interactivebrokers.com/en/index.php?f=292 You can also direct your ISA specific complaints via email to isa@interactivebrokers.co.uk (Please note that in order to ensure that your complaint is flagged and given the required attention, Interactive Brokers kindly asks you to state “COMPLAINT” in the subject header field of the email).
Are Corporate Actions allowed under my IBUKL Stocks and Shares ISA?
Allowed to participate but cannot exceed the annual ISA subscription limit. If it were to exceed the subscription limit, the shares should be transferred to a non-ISA account (see above sections 17 ‘What should I do if I exceed my ISA allowance?’.
FX Handling and your IBUKL Stocks and Shares ISA
We will automatically convert currencies when trading non-GBP denominated securities. To do this, we will engage in “spot” currency transactions on your behalf in order to settle your buy orders or convert the proceeds of a sell order. For opening orders we will base the exchange rate off the spot exchange rate at the time of trade plus our 0.03% fee. For closing orders any non GBP balances will be closed at the end of the trading day at the closing exchange rate of the day plus our 0.03% fee.
The below example illustrates the cost in GBP of a $1,000 USD Trade
Example GBP/USD Spot Rate: 1.3432/1.3433
| Order Type | FX Conversion Rate inc 0.03% fee | Cost of $1000 USD Trade |
|---|---|---|
| Buy | 1.3430 | £744.61 |
| Sell | 1.3435 | £744.31 |
Can I allow my IBUKL Stocks and Shares ISA to be used as security for any borrowing?
No. In accordance with HMRC regulations, any investments and/or cash within your IBUKL Stocks and Shares ISA will be, and must remain, completely beneficially owned by you and you must not grant any rights or interests over the investments to any other person (for example, you must not allow your investments to be used as security for any borrowing).
Can my IBUKL Stocks and Shares ISA participate in the Interactive Brokers Stock Yield Enhancement Program (SYEP)?
No. In accordance with HMRC regulations, IBUKL ISA holders are not eligible to participate in the SYEP.
What if I have additional questions?
Our client services team are on hand to help via phone or email. If you have any questions about your IBUKL Stocks and Shares ISA, please contact our dedicated ISA Support team who are available 8am to 6pm GMT Monday to Friday, excluding public holidays.
Can I open a Joint ISA account?
ISA account must be individual accounts in accordance with HMRC ISA guidelines at this time.
What is a Cash ISA?
Cash ISAs include savings in bank and building society accounts and some National Savings and Investment products.
Please Note: Cash ISAs are not offered by Interactive Brokers.
How can I view statements from my previous ISA IBUK since migration to IBUKL?
You can view the IBUK ISA accounts by following these steps in the Client Portal:
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Log into Client Portal
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Click Performance & Reports followed by Statements under Reports
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Then click Add/Edit next to your account number
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In the pop out menu that appears, please select the blue filter icon.
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Please select ‘Migrated’ and then select the old account.
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Now, you can download the reports/activity statements as you normally would.
Can I trade fractional shares in an IB UKL ISA account?
It is not possible to trade fractional shares in the IBUKL ISA account in accordance with HMRC ISA guidelines at this time.
Can I set up a recurring investment in an IBUKL ISA account?
No, recurring investments are not allowed in an IBUKL ISA account.
Please Note: Recurring investments require fractional shares trading permissions. Fractional shares trading permissions are not allowed in an IBUKL ISA account.
Can I use a Referral Link in my IB UKL ISA account?
No, ISA accounts are not eligible for the referral program.
Do I need National Insurance Number to open an ISA?
Yes, you will need a National Insurance Number to open an ISA account.
Please Note: If not already listed then you need to enter the National Insurance Number in the Tax ID section of your profile to open a linked ISA account. The system will return an error if you do not.
(Client Portal -> User Menu -> Settings -> Account Settings -> Account Profile -> Profile -> Edit Profile and on the ‘Tax Residency’ page you may edit the information or remove Tax Residency and add another Tax Residency.)
I have UK Citizenship. However, I am resident of Hong Kong. Can I open an IB UKL ISA account?
You can only open an IBUKL ISA account if you are a full tax resident of the United Kingdom with a National Insurance Number.
Last updated on October 25, 2024