Information regarding IBUKL ISA (Individual Savings Account)

General Information

This FAQ does not apply to JISAs (Junior ISA Savings Accounts).  For JISAs please refer to the JISA FAQ.

What is an ISA (Individual Savings Account) and what benefits does it offer me?

An ISA is a tax-free savings or investment account that allows you to save or invest up to a certain amount each year without paying tax on any growth, income, or capital gains.

There are 4 types of ISAs available:

• Stocks & Shares ISA;
• Cash ISA;
• Innovative Finance ISA; and
• Lifetime ISA.

A Stocks and Shares ISA acts as a "wrapper" that shelters your investments from Income Tax and Capital Gains Tax. It is not an investment itself, but rather a tax-efficient way to hold qualifying investments.

Please Note: Tax treatments depend on your individual circumstances and may change in the future.

What ISA types are offered at Interactive Brokers (U.K.) Limited (IBUKL)?

IBUKL offers:

• Stocks and Shares ISAs; and
• Junior Stocks and Shares ISAs (see separate JISA FAQ).

IBUKL does not offer Cash ISAs (including Junior Cash ISAs), Innovative Finance ISAs or Lifetime ISAs.

How safe is your IBUKL Stocks and Shares ISA (IBUKL ISA)?

IBUKL is authorised and regulated by the Financial Conduct Authority (FCA). We are approved by His Majesty’s Revenue and Customs (HMRC) to act as an ISA manager.

Under your agreement with us, and in accordance with the FCA rules relating to client money and client assets (together “Assets”), IBUKL will be responsible for holding and protecting your Assets. This means IBUKL:

• Separates your Assets from its own; and
• Cannot use your Assets for its business activities.

In the unlikely event of IBUKL’s insolvency, an administrator would return your Assets to you. Any shortfall in eligible claims would be covered by the UK Financial Services Compensation Scheme (FSCS) up to £85,000 per eligible client.

Please Note: The FSCS applies to designated investments but may not cover all investments or transactions, particularly investment losses. For more information, visit www.fscs.org.uk.

Account Management

Can I open a joint ISA account?

No, ISA accounts must be individual accounts in accordance with HMRC guidelines.

What are Corporate Actions and are they allowed under my IBUKL ISA?

Corporate actions are events carried out by a company that impact its shareholders (e.g. bonus issues, dividends, offers for subscription).  Some corporate actions are mandatory (they go ahead without any action required on the part of the shareholder) and some are voluntary (requiring the shareholder to decide on a course of action). You can participate in corporate actions in connection with investments held within your IBUKL ISA but there may be additional factors to consider.  Dividends earned within an ISA are generally tax-free, and reinvesting them does not count towards your annual ISA allowance. However, if a corporate action involves using cash to subscribe for new shares (e.g., a rights issue), you may need to use some of your existing ISA allowance or add new funds to your ISA, up to the annual limit, to participate.

****If I am assigned or there is a corporate action on a warrant position, what happens?

Positions will no longer be eligible to hold in an ISA, and therefore will be either liquidated, unless, upon client request before liquidation has taken place, we may transfer to the client’s General Investment Account.

Can I appoint a financial advisor to manage my IBUKL ISA?

Yes, you can appoint a financial advisor to manage your IBUKL ISA on your behalf. This can be requested in Client Portal under Settings->Manage Account Linking.

Why did my account number change in 2024?

The account number changed due to the migration of ISA accounts from Interactive Brokers UK to IBUKL in March 2024.

If I open an IB UKL ISA account, how can I link it to an existing GIA account?

1. Log in to your IBUK Client Portal
2. Navigate to Settings
3. Select "Manage Account Linking"
4. Select Link All of My Existing Accounts Under a Single Username and Password

Why can I only deposit and withdraw in GBP in my IB UKL ISA account?

According to HMRC regulations, it is not permissible to hold an ISA account in any currency other than GBP. To accurately track the contributions into an ISA IBUK permits GBP deposits and withdrawals only.

Charges & Fees

What are the charges for the IBUKL ISA?

There is a monthly minimum activity fee of £3. If you generate £2 of commission in a month, you would be charged the remaining balance of £1 as a minimum activity fee. If you generate £3 or more in consolidated commissions from linked accounts in a month, there will be no fee.

For an overview of our commissions, visit our webpage.

Can I make Withdrawals? 

Yes, you can make two free withdrawals per month, subsequent withdrawals will incur a £7 fee.

For an overview of our commissions, visit our webpage.

What is the annual fee for the IBUKL ISA?

There is no annual ISA fee at IBUKL. Other costs and charges apply as detailed above in Q1.

FX Handling and your IBUKL ISA

We automatically convert currencies when trading non-GBP denominated securities using "spot" currency transactions:

• For opening orders: spot exchange rate at time of trade plus 0.03% fee; and
• For closing orders: non-GBP balances closed at end of trading day at the closing exchange rate plus 0.03% fee.

Example cost in GBP of a $1,000 USD Trade with GBP/USD Spot Rate: 1.3432/1.3433:

Can I pay the IBUKL ISA monthly fee using funds in my main account?

Yes this can be requested within Client Portal->Settings->Market Data and adjusting the account within “Billable Account”.

Can I link more that one GIA account to my ISA account?

Yes, you can link multiple General Investment Accounts (GIAs) to your ISA account at IBUK.

I opened an IBUK ISA account and notice a second account has appeared that I did not request. Could you please explain the reason for opening this second account?

A General Investment Account (GIA) is automatically opened when you open an ISA account with us. This complementary account enables you to hold investments that fall outside your ISA's tax-advantaged structure and annual contribution limits. Should any non-qualifying positions arise that cannot be liquidated within your ISA, they will be transferred to the GIA. This account incurs no additional charges.

Contribution & Allowance

What is the ISA allowance for the 2025/2026 tax year?

The tax year runs from 6 April to the following 5 April. For the 2025/2026 tax year, the annual ISA allowance is £20,000 per person.

Key points:

• Unused allowance cannot be rolled over to the next tax year;
• You can divide this allowance across multiple ISAs, including more than one ISA of the same type (e.g., multiple stocks and shares ISAs), as long as the total subscribed does not exceed £20,000.

Can I check the tax-year to date contributions I have made into my IBUKL ISA and my remaining ISA allowance?

Yes. When creating 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 during the current tax year. You can check your subscription status and remaining allowance via the funding page in the Client Portal.

What happens if I exceed my ISA allowance?

If our systems detect that a deposit has taken you over the annual limit, any identified excess will be transferred to your General Investment Account.

If you believe that you have overcontributed to your ISA or that the calculated contribution is incorrect, please contact us.

Please Note: The ISA annual subscription limit for the 2025/2026 tax year is £20,000. Investors are responsible for ensuring they do not exceed this limit across all their ISA accounts, regardless of the number of different providers. This means that you must track your total contributions across all ISA types to ensure you do not go over the £20,000 limit.

Can I fund my IBUKL ISA via internal transfer from my existing non-ISA account?

Yes, if the existing account is an individual account in your name.

Internal transfers from non-ISA to ISA:

• Will be considered as a contribution;
• Are only allowed within yearly contribution limits; and
• Cannot include position transfers.

Can I make wire transfers to fund my IBUKL ISA?

Yes, wire transfers from an account in your name are permitted for funding your IBUKL ISA.

Can I set up a recurring investment?

No, currently the recurring investment feature is not available in IBUKL ISA accounts.

Can I cancel my contribution for this fiscal year?

No, previous contributions cannot be cancelled. If you believe you have overcontributed to your ISA(s), please refer to Q 4.

Can I transfer funds out to a non-ISA bank account?

• Yes, you can withdraw funds from your IBUKL ISA to any bank account in your name.

Eligibility

Who is eligible for an IBUKL ISA?

In accordance with HMRC regulations, you must be an individual who is:

• A resident for tax purposes in the UK; and
• Over the age of 18.

For more information on tax residency, visit: https://www.gov.uk/tax-foreign-income/residence.

Do I need a National Insurance Number to open an IBUKL ISA?

Yes, you must have a National Insurance Number to open an ISA account.

Note: If not already listed, you need to enter your National Insurance Number in the Tax ID section of your profile to open a linked ISA account. To update this information:

• Go to Client Portal → User Menu → Settings → Account Settings → Account Profile → Profile → Edit Profile; and
• On the 'Tax Residency' page, edit the information or remove Tax Residency and add another Tax Residency.

Can I open an IBUKL ISA if I am a UK citizen but live abroad?

You can only open an IBUKL ISA account if you are a full tax resident of the United Kingdom with a National Insurance Number.

I entered my tax ID but it says that it is invalid. Which tax ID should I enter?

You must enter your National Insurance Number, it is the only acceptable form of tax ID to open an ISA account.

I am moving abroad. But I want to keep my IBUKL ISA. What steps should I take?

You may keep your existing IBUKL ISA and maintain the tax benefits on existing investments, but:

• Subscription restrictions: You may continue making subscriptions until the end of the tax year in which you cease to be UK tax-resident. After that, you cannot make new subscriptions unless you qualify for HMRC exceptions.
• Notification: You should inform us of your change of address and tax residency status as soon as possible through the Client Portal or by contacting Customer Service.
• Account maintenance: You can continue managing existing ISA investments, including selling holdings and reinvesting within the ISA, but cannot add new contributions after the tax year in which you cease to be UK tax-resident.
• Future return to the UK: If you return and become UK tax-resident again, you may resume making contributions to your ISA, subject to the annual allowance.

Can I have more than one IBUKL ISA?

No, we do not allow an individual to open multiple ISA accounts.

Can I have more than one Stocks and Shares ISAs with different ISA providers?

Yes (as of 6 April 2024) you can have multiple Stocks and Shares ISAs.

Please Note: Paying into multiple Stocks and Shares ISAs may result in you paying more fees than if you had a single ISA.

Can I link to my broker/advisor?

Yes, provided that the broker/advisor has an IBKR advisor account.

Can I link to my individual non-ISA account after I open my IBUKL ISA?

Yes, to link your ISA to your individual GIA:

1. Log in to Client Portal
2. Click the User menu (head and shoulders icon in the top right corner) followed by Settings
3. Under Account Settings find the Account Configuration section

4. Click Manage Account Linking 
5. The Create, Link or Partition an Account page opens
6. Select the radio button that applies to your linking needs and follow the steps to complete the process

Flexibility

What is a flexible Stocks and Shares ISA?

• ISA flexibility means you can withdraw funds from your ISA without affecting your annual allowance. A flexible Stocks and Shares ISA allows you to withdraw funds and put them back within the same tax year without affecting your annual ISA allowance.

Does IBUKL offer a flexible Stocks and Shares ISA?

• No, the IBUKL does not offer a flexible Stocks and Shares ISA.

Investments

What can I invest in my IBUKL ISA?

You can invest in the following qualifying investments:

• Shares;
• Securities issued by Companies (Stocks);
• Recognised UCITS;
• Mutual Funds;
• Bonds; and
• Qualifying Depository Receipts, American Depository Receipts and American Depository Shares 

Each investment type has a specific set of rules to make it ISA-eligible.  

Please Note: Qualifying investments are subject to change in accordance with HRMC regulations. 

What happens if I hold non-qualifying investments in my IBUKL ISA?

If we identify that you hold non-qualifying investments in your IBUK Investment ISA, we may take one of the following actions:

• Liquidate the investments: We may sell the non-qualifying investments and place the resulting cash (minus any applicable fees or charges) back into your IBUK Investment ISA. The sale could result in a gain or a loss, depending on market conditions at the time of the transaction. Please note that selling non-qualifying investments may trigger capital gains tax or other tax implications outside of the ISA wrapper, depending on your personal circumstances.
• Transfer to a non-ISA IBUK account: Alternatively, if we cannot sell the investments, we may transfer them to your non-ISA IBUK account(s).

Please Note: Under the terms of your agreement with us, you have authorised IBUK to open a non-ISA account on your behalf, if necessary, for this purpose. This ensures that your non-qualifying investments are held in an appropriate account. However, transferring investments outside of an ISA may result in the loss of the tax benefits associated with your ISA.

It is important to regularly review the eligibility of the investments held in your ISA to ensure they meet the qualifying criteria set by HMRC. Holding non-qualifying investments can affect the tax advantages of your ISA, so if you are unsure about whether your investments qualify, we recommend that you speak to an independent financial advisor.

What exchanges does IBUKL support for ISAs?

IBUKL supports numerous HMRC-recognised exchanges, including:

Can I trade on margin under the IBUKL ISA?

No. You can only open an IBUKL ISA under a GBP cash account type, which requires all transactions to be made with available cash or long positions (i.e. you own the qualifying investment).

Can I use my ISA as security for borrowing?

No. In accordance with HMRC regulations, investments and cash within your Stocks and Shares ISA must remain owned by you, and you cannot grant any rights or interests over the investments to any other person.

Can I participate in the Stock Yield Enhancement Programme (SYEP)?

No. In accordance with HMRC regulations, IBUKL ISA holders are not eligible to participate in the SYEP.

What funds can I trade in my IBUKL ISA?

Select Account Type "ISA/JISA" in the Mutual Fund search tool to see ISA eligible Funds.

Is dividend reinvestment allowed?

No, the Dividend Reinvestment Programme is not currently available.

Is fractional share trading allowed?

No, IBUKL does not currently support fractional share trading in an IBUKL ISA.

Can I trade bonds in my IBUKL ISA? 

Yes, you can trade bonds in your IBUKL ISA account. Generally, ISA-eligible bonds include:

• UK Government bonds (gilts);
• UK corporate bonds listed on recognised stock exchanges;
• Qualifying international corporate bonds

Can I trade Penny Stocks in an IBUKL ISA?

No, Penny stocks are not eligible for IBUKL ISA accounts.

Will my IBUKL ISA automatically earn interest?

Accounts above the minimum cash threshold will automatically earn interest daily. For rates, see our webpage.

Risks & Protections

Can I lose money in an ISA?

Yes. The value of investments in your IBUKL ISA and the income received from them can fall as well as rise. You may get back less than you invested.

Important:

• Past performance is not an indication of future performance;
• Some investments need to be held long-term to achieve a return; and
• The IBUKL ISA is an execution-only service;
• IBUKL (and its affiliates) do not provide investment or other advice;
• If you need advice, consult an independent financial advisor.

Transfers, Cancellations and Death

How do I transfer my Stocks and Shares ISA from my current ISA provider to IBUKL?

To transfer an existing ISA to IBUKL:

1. Go to the Client Portal, select Transfer & Pay, then Transfer Existing ISA;
2. Submit your transfer instruction; and
3. If accepted, IBUKL will instruct your existing ISA provider to transfer your investments and/or cash to IBUKL.

Important:

• IBUKL only supports full ISA transfers, not partial transfers; and
• For investments not supported by IBUKL, you can either:
• Liquidate these investments yourself before submitting the transfer instruction; or
• Instruct IBUKL to liquidate them on your behalf.

Why was my inbound ISA rejected?

ISA transfers can be rejected due to:

• Mismatched account format;
• Mismatched account information (Name, Address/postal code, Date of Birth, National Identification Number);
• Additional information or documents required by your ISA provider;
• Document submission requirements via post; and
• Changes in valuations or clearing-related reasons.

Please Note: You should ensure that all information you enter in connection with the transfer instruction matches your current ISA provider's records and that the account number is entered exactly as shown on your statements.

What is the status of my ISA Transfer?

You can check the Transaction Status and History page of your account to track the progress of your transfer. The progress bar will guide you through each step with relevant guidance.

What is the difference between "In Species/Position Transfer" and "Cash only transfer" for ISA accounts?

Depending on your ISA provider, IBKR may offer:

• In Species/Position Transfers: Transfers your existing investments directly; or
• Cash only transfers: Liquidates investments and transfers the cash.

You can see which transfer type is available for your provider in Client Portal under Transfer & Pay → Transfer Existing ISA.

Can I transfer an ISA out of IBUKL?

Yes, you can transfer your IBUKL Stocks and Shares ISA to another provider.

What are the transfer charges for ISAs?

IBUKL does not charge for transfers, though the transferring ISA manager may charge for transferring investments or cash proceeds.

How long does an ISA transfer take to complete?

ISA transfers should take no longer than:

• 15 business days for transfers to/from cash ISAs; or
• 30 calendar days for other ISA types of transfers.

Please Note: The timeframe also depends on the delivering ISA provider.

Can I transfer my Innovative Finance ISA from another ISA manager into IBUKL?

Yes, you can transfer an Innovative Finance ISA (IF-ISA) to IBUKL. To do so, you can submit a transfer instruction via Client Portal → Transfer & Pay → Transfer Existing ISA.

If IBUKL accepts the transfer, we will instruct your existing ISA manager to transfer supported investments and/or cash. For unsupported investments, you can either:

• Liquidate them yourself before submitting your transfer request; or
• Instruct IBKR to liquidate them on your behalf.

Please Note: You need an open and active IBUKL ISA account with IBUKL to make this request.

Can I partially transfer an ISA?

No, IBUKL  does not support partial transfers. Only full account transfer requests can be made.

Does transferring ISAs impact your ISA allowance?

No, ISA transfers do not count as new subscriptions. An ISA transfer from a previous tax year will not impact your ISA allowance for the current tax year.  Please however not that any subscriptions within the current tax year will continue to count towards your ISA allowance and you remain responsible for ensuring that you comply with/do not exceed your annual ISA allowance.

What internal transfers are allowed?

Cash Transfers

• From ISA to non-ISA: not possible.
• From non-ISA to ISA: possible in Client Portal.

Positions Transfers

• From ISA to non-ISA: not possible.
• From non-ISA to ISA: not possible.

External transfers to IB ISA permitted

• Cash transfers: possible.
• Full in-specie transfers (Cash and positions): possible.
• Partial transfers: Not permitted.

Can I cancel my IBUKL ISA?

Yes, you have a legal right to cancel your IBUKL ISA if you change your mind, but time limits apply (see below).

How can I cancel my IBUKL ISA?

To cancel your ISA:

• You must do so within fourteen (14) days from receiving our confirmation email; and
• Cancellation must be requested via the Client Portal.

For transfer payments:

• You have fourteen (14) days from receiving our acknowledgement email to cancel.

Important: If you cancel a transfer from another ISA manager to IBUKL, that manager may not accept the ISA back, potentially resulting in closure and loss of tax benefits.

What happens to your ISA when you die?

• When someone dies, their ISA becomes a "continuing ISA" and remains open for a limited time, generally up to three (3) years and one (1) day. The ISA can continue to grow, retaining its tax-free benefits during this period, but no new funds can be added. The money and investments within the ISA become part of the deceased's estate and are subject to Inheritance Tax (IHT) if the estate exceeds the IHT threshold. The ISA is ultimately closed by the executor or administrator of the estate or, if no instructions are received, by the ISA provider after the three-year period.

Transaction Rules

What transactions are allowed and what transactions are not allowed?

Example of allowed transactions:

• An individual subscribes  GBP  10,000 into one stocks and shares ISA, GBP 2,000 into another stocks and shares ISA, and GBP 8,000 into a cash ISA. The total subscriptions for the tax year are GBP 20,000, and the annual ISA allowance has not been exceeded.

Important: From 6 April 2024, individuals can subscribe to multiple ISAs of the same type within the annual ISA allowance.

Example of disallowed transactions:

• An individual subscribes a total of GBP 22,000 across their ISAs during the same tax year, exceeding the annual ISA allowance of GBP 20,000.

Complaints & Support

How do I file a complaint?

Clients are encouraged to use the WebTicket system for prompt attention.

Our Complaints Procedure is available here: Interactive Brokers (UK) Limited - Complaints Handling Policy and Procedures Summary.

Who can I contact for support?

Our client services team is available via phone or email. For questions about your IBUKL ISA, contact our dedicated ISA Support team, available 8am to 6pm GMT Monday to Friday, excluding public holidays.

Our client services team is available via phone or email. For questions about your IBUKL ISA, contact our dedicated ISA Support team. You can reach our general support services through:

• Phone: +44 20 3744 7220
• Client Portal: Log in at interactivebrokers.co.uk and select "Support" or "Message Center".