Q: What can I hold in an ISA?

Cash ISA You can only hold cash in a Cash ISA. Investments and any other non-cash financial instruments are prohibited. Stocks ISA In your 212 Stocks ISA you can hold: Stocks ETFs Cash Certain instruments resulting from corporate actions, learn more here The UK’s HMRC defines which investments are eliglble . Most stocks and ETFs are eligible but their status can change if they get delisted from a certain exchange. A common example is a down listing from a US stock exchange, like NASDAQ or NYSE, to OTC Markets. Unlike NASDAQ and NYSE, OTC Markets is not a recognized exchanged by HMRC so most investments would be ineligible. If you hold shares that no longer qualify for your Stocks ISA account, you’ll be notified of this change via email and in-app notification. You’ll usually be able to hold or sell your shares up to a specific deadline, after which they’ll be automatically sold. The proceeds from these sales can remain in your Stocks ISA.

Question 1

What are ISAs?

Accepted Answer

Individual Saving Accounts (ISAs) let you save cash tax-free. Any income you make in an ISA is tax-free. There’s an annual limit on how much you can put in your ISA. This limit is called the ISA allowance.

Question 2

How does the ISA allowance work?

Accepted Answer

£20,000 is the maximum amount you can contribute to your ISAs each tax year. This allowance is shared between all of your ISA accounts. If you have a Stocks ISA and a Cash ISA, you can’t contribute more than £20,000 to them combined. However, there are no restrictions on how you split the £20,000 allowance. You can put it all in one account or split it across multiple accounts with different providers.

Question 3

Can I withdraw from ISAs?

Accepted Answer

Your 212 ISAs are flexible. This means you can withdraw any amount and deposit it back without impacting your allowance, as long as you do it within the same tax year. The UK tax year runs from 6 April to 5 April.

For example, if you deposit £20,000 on the 6th of April 2024, you can withdraw it on the same day and deposit it back anytime you want until the 5th of April 2025. Any amount you withdraw, including previous years contributions, you can deposit back within the same tax year.

Question 4

Can I open an ISA?

Accepted Answer

Any UK resident over 18 can have an ISA account.

Question 5

What are the different types of ISAs?

Accepted Answer

There are five types of ISAs:

Cash ISA
Stocks and shares ISA
Innovative finance ISA
Lifetime ISA
Junior ISA

With Trading 212 you can have a Cash ISA and a Stocks ISA.

Question 6

Can I transfer an existing ISA?

Accepted Answer

You can transfer your ISAs in and out of Trading 212 without any restrictions or fees, although your other broker may charge you a fee.

To learn more about ISA transfers, visit our ISA & Portfolio transfers section.

Question 7

Can I have multiple ISAs?

Accepted Answer

You can have multiple ISAs with multiple brokers. The only thing you need to make sure is that you don’t breach your £20,000 annual allowance if you have ISAs with multiple brokers.

If you think you may have contributed more than the annual allowance, please contact HMRC for more information.

Question 8

What can I hold in an ISA?

Accepted Answer

Cash ISA
You can only hold cash in a Cash ISA. Investments and any other non-cash financial instruments are prohibited.

Stocks ISA
In your 212 Stocks ISA you can hold:

Stocks
ETFs
Cash
Certain instruments resulting from corporate actions, learn more here

The UK’s HMRC defines which investments are eliglble. Most stocks and ETFs are eligible but their status can change if they get delisted from a certain exchange. A common example is a down listing from a US stock exchange, like NASDAQ or NYSE, to OTC Markets. Unlike NASDAQ and NYSE, OTC Markets is not a recognized exchanged by HMRC so most investments would be ineligible.
If you hold shares that no longer qualify for your Stocks ISA account, you’ll be notified of this change via email and in-app notification. You’ll usually be able to hold or sell your shares up to a specific deadline, after which they’ll be automatically sold. The proceeds from these sales can remain in your Stocks ISA.

Question 9

Can I keep my ISA if I move abroad?

Accepted Answer

If you open an ISA in the UK then move abroad, you can’t put more money into it after the tax year that you move, unless you’re a Crown employee working overseas or their spouse or civil partner. It’s important to notify your ISA provider when you stop being a resident of the UK.

You can still maintain your ISA account and receive tax relief on the money and investments held within it. You just can’t contribute additional money.

If you return and become a UK resident again, you’ll again be able to contribute money to your ISAs.

Question 10

How does Trading 212 hold my cash to earn interest?

Accepted Answer

When you use our Cash ISA product, 100% of your money is held at some of the world's largest banks. We appoint and review the banks, monitoring them continuously to ensure they remain appropriate to hold client money. Client money is segregated and held separately from our money in client money bank accounts. Your money is ring-fenced, meaning legally binding agreements ensure that your money belongs to you and cannot be accessed or used by us, the bank or anyone else, even in the event of firm failure.

Question 11

How does the FSCS protection work?

Accepted Answer

Your money is also protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per partner bank. This means that, in the unlikely event that one of our appointed partner banks fails, your money held with that bank is protected up to this limit.

It's important to note that the £85,000 limit applies to the total amount of money you hold at each specific bank, whether it's deposited by Trading 212, other providers, or by you directly.

Learn more about how the FSCS works here.

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4.86%

4.82%

4.81%

4.51%

5%

5.01%

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None

4.82%

4.81%

4.51%

5%

5.01%

None

None

4.86%

4.82%

None

4.81%

None

4.51%

5%

5.01%

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