Can you have a joint ISA?

An Individual Savings Account (ISA) is a great way to save and invest money free from tax. At present, there’s no joint ISA account or any other type of ISA that can be owned by more than one person. 

The owner of an ISA is the only person who can directly pay into their ISA account, unless you are contributing to a Junior ISA, where anyone can pay in.

While there’s no joint ISA, you can open a joint Dealing account. This will allow you to invest in stocks and shares, but it won’t have the same tax exemptions as an ISA.

Can you transfer an ISA to your spouse?

You can’t transfer ISAs between spouses, but you can transfer investments between these accounts and your spouse could then invest it in their ISA. This process is often called ‘Bed and ISA’. Here’s how it works: 

Can my partner inherit my ISA?

Just like other parts of your estate, your partner can inherit the assets within your ISA. The account itself won’t be changed to their name, but they’ll be able to transfer the assets from your ISA into their own ISA and will be exempt from the £20,000 annual allowance to make this transfer.

If you’re married (or in a civil partnership), your ISA can be passed on to your partner without facing any inheritance tax. However, if you’re not married, even if you live together, there’ll be no exemption from inheritance tax.  

The exemption for married couples or those in a civil partnership means that money gifted before death, such as transferring money for a Bed and ISA, won’t be subject to inheritance tax even if it’s done less than seven years before death.

Read more about what happens to your ISA when you die

How to make ISAs work for you as a couple

The best way to ensure ISAs are being used efficiently is to max out the contributions of both ISAs if you’re financially able, and if you’re comfortable transferring money into your spouse’s name. This maximises the amount of money that’s protected from tax.

If you’re contributing smaller amounts to your ISA but saving for something such as a first home, you can also take advantage of the Lifetime ISA. The government tops up your contribution by 25%, up to a maximum of £1,000 a year. Therefore, if each of you contribute the maximum £4,000 to your Lifetime ISA, you can both get the government bonus of £1,000.  

Before you choose to invest this way, ensure your goals meet the requirements of a Lifetime ISA, which must be used for buying a first home of £450,000 or less, or for retirement. Withdrawals for any other reason before you turn 60 are subject to a 25% penalty charge.

Compare Lifetime ISA and pension for retirement savings

Can I pay into someone else’s ISA?  

You can’t pay directly into someone else’s ISA unless it’s a Junior ISA. With Junior ISAs, anyone can contribute, such as parents, grandparents, or family friends. But the total contributions can’t exceed £9,000 per year.

If you choose to open a Junior ISA for your child, you won’t be able to withdraw the money but can make investment decisions on their behalf. The child can begin to manage the account at 16, and the account will be fully theirs at 18. The Junior ISA automatically becomes an adult ISA, and they can manage it as they see fit.

Learn more about what happens to a Junior ISA at 18

Can I manage someone else’s ISA?

It’s possible to link accounts across your family, up to a maximum of five accounts. For example, you could manage your spouse’s Stocks and shares ISA.

Your spouse first needs to grant you access and then state whether you can simply view the account or grant permission for you to buy and sell investments.

Learn more about family linking 

Alternative options to joint ISAs

If you want to hold a joint account with your partner, you can choose to open a joint Dealing account or joint savings account.

A joint Dealing account will allow you to invest your money in the market, while a savings account can accumulate interest. However, if you’re investing large sums through this method, it’s important to be aware of the possible capital gains tax (CGT) implications.

Both you and your partner have a CGT allowance of £3,000 each year, and usually, the assets in the joint dealing account will be viewed with a 50/50 split. So, if you exceed a capital gains redemption of £6,000, you’ll be taxed on half of the excess, and your partner will be taxed on the other half. However, it’s important to check the terms of your account, as some can deal with this process slightly differently.

Learn more about our Dealing account

Complete our joint Dealing account application form