Am I eligible for an ISA?

In order to be eligible for an ISA an investor must be an individual (i.e. not a company or trustee) and must:

• be aged at least 18, or 16 for a cash ISA.
• be resident and ordinarily resident in the UK for tax purposes, or if not resident be performing duties as a Crown employee serving overseas and paid out of the public revenue of the United Kingdom (typically a serving member of the armed forces or a diplomat).
  
• not have subscribed to another ISA of the same type in the same tax year; and
  
• not have exceeded the overall
  subscription limit.

An existing ISA need not be closed if an investor ceases to be eligible but no further subscriptions can be made until they become eligible again.

A husband and wife are treated as separate individuals so although joint ownership of an ISA is prohibited, each may fully subscribe to one in their own name.

What happens if I die?

Your ISA will end on the date of your death. There will be no tax to pay on income or capital gains up to that date, but your personal representatives will have to account for tax on any income or gains arising after your death.

The ISA manager will either, sell the investments and pay the proceeds to your personal representative (or a beneficiary of your estate), or transfer the investments directly into their hands. The terms and conditions of the ISA may specify which it will be.

What happens if I move abroad?

You can only open an ISA if you are resident and ordinarily resident in the UK for tax purposes.

Crown employees, such as diplomats or members of the armed forces, who are working overseas and paid by the Government are eligible to open an ISA. Their spouses or civil partners can also open an ISA.

If you start an ISA in the UK and then go abroad, you cannot continue putting money into the ISA (unless you are a Crown employee working overseas or the spouse or civil partner of a Crown employee working overseas). However, you can keep your ISA and you will still get tax relief on investments held in the ISA.

When you return, you can start putting money in again (subject to the normal
annual limits).