We've put together our most commonly asked questions about ISAs to help you, whether you're topping up your ISA, transferring one to us, or simply opening a new one.
How much money can I put into ISAs?
The maximum amount you’re allowed to pay into ISAs during each tax year (6 April to 5 April) is called an ISA allowance. This year it’s £20,000 for adult ISAs. If you're eligible, you can use up to £4,000 of this in a Lifetime ISA. The maximum you can pay into a Junior ISA this tax year is £4,260.
You’re also allowed to leave your previous years’ allowances in your ISAs. So you’ll get the benefit of tax-efficient returns on your full balance, not just this tax year’s ISA allowance.
Can I have more than one Cash ISA?
You can only have one Cash ISA in any tax year. If you've already got one from a previous tax year, you might be able to pay your new allowance into it if your account allows it. If it doesn't, you'll need to open a new ISA. You can also transfer your Cash ISA to another provider in the same tax year you open and pay in, as long as your account allows it and you transfer the full amount you paid in during that year.
How many ISAs can I have?
Each tax year, you can put that year’s ISA allowance into a Cash ISA, a Stocks & Shares ISA, an Innovative Finance ISA, a Lifetime ISA (if you're eligible) or a combination of the four. It's up to you how much you put in each, as long as you don't have more than one of each and don't go over the total allowance between the four of them. If you're eligible for a Lifetime ISA, the maximum you can pay into one is £4,000 a year.
When it comes to the next tax year, you may not need to open a new ISA. If you have one from a previous year, you may be able to pay your new allowance into that if your account allows it.
How do I transfer my ISA to Skipton?
Before you can transfer your ISA to us you’ll need to choose and apply for a Skipton Cash ISA that allows transfers in. Transfers need to be done through the ISA transfer process to protect the tax-free status of your funds. We accept cash transfers from any type of ISA.
If you're transferring into a Lifetime ISA from another type of ISA, money you transfer in will count towards your £4,000 annual Lifetime ISA allowance and you’ll receive a 25% government bonus on your contributions.
How long does a transfer take?
We aim to complete 80% of Cash ISA and Innovative Finance ISA transfers within seven working days. Stocks & Shares ISA transfers take up to 26 days. Lifetime ISA transfers take up to 30 days. Find out more about transferring into our Lifetime ISA here.
Can I open a joint account ISA?
No – there isn't a joint account version of an ISA.
What happens if someone who has an ISA passes away?
For an ISA customer who has passed away before 5 April 2018, their ISA will revert to a non ISA easy access account from the date of death.
For ISA customers who pass away on or after 5 April 2018, any ISA(s) held may remain tax-free.
Husbands, wives and civil partners can inherit their loved one’s ISA allowance through Additional Permitted Subscription (APS). If your spouse/civil partner had an ISA and passed away on or after 3 December 2014, APS can increase your ISA allowance. Even if they left the funds in their ISA to someone else, you’ll still inherit the ISA allowance they’ve built up over the years, which can be transferred to you as an Additional Permitted Subscription allowance. You can find out more about our Legacy Cash ISA here.
Can I withdraw money from my ISA?
If your Skipton Cash ISA is flexible you can withdraw money whenever you like and, as long as you replace the money in the same tax year your annual ISA allowance won’t be affected. If you close a Skipton Fixed Rate ISA during the fixed term, a penalty will be applied.
How do I know if my Skipton Cash ISA is flexible?
All our on sale Easy Access Cash ISAs are flexible. Find out more about flexible ISAs here.
Can I make regular payments into an ISA?
Yes – you can make regular payments from a bank account into a Skipton Easy Access Cash ISA or Cash Lifetime ISA, if your account allows it, or you can pay in at your local branch. For Skipton Fixed Rate ISAs, you can only pay in funds for seven days after account opening, so it's not designed for regular payments.
Can I carry this year’s ISA allowance over to next year if I don’t use it?
No – You have to use your ISA allowance in the relevant tax year. However, you can continue to pay in any unused current year’s ISA allowance into an ISA you already have open if the account allows it.
What are Innovative Finance ISAs?
Launched in April 2016, the Innovative Finance ISA enables you to lend money through peer-to-peer lending platforms in a tax-free manner.
The benefit of such an approach is that the interest rates on offer to peer-to-peer lenders tend to be greater than those currently available from Cash ISAs. However, the risk is also considerably higher, as your capital is not guaranteed and you may get back less than you invest. Skipton Building Society does not offer Innovative Finance ISAs.