ISA Eligibility: Who Can Open an ISA and What You Need to Know

When you hear ISA, a UK government-backed savings account that lets you earn interest or investment returns without paying tax. Also known as an Individual Savings Account, it’s one of the most straightforward ways to grow your money without giving a cut to the taxman. But not everyone can open one. You have to be a UK resident, at least 16 for a Cash ISA, or 18 for a Stocks and Shares ISA. And you can only have one of each type per tax year. That’s it. No complicated forms, no hidden income tests — just clear rules.

The ISA tax-free allowance, the total amount you can put into all your ISAs in one tax year. Also known as the annual ISA limit, it’s currently £20,000 for the 2024/25 tax year. You can split that across different types — put £10,000 in a Cash ISA, £10,000 in a Stocks and Shares ISA, or all of it in one. But if you go over, HMRC will notice. And they’ll make you pay tax on the excess. It’s not a mistake you want to make. And if you’re under 18, you can’t open a Stocks and Shares ISA at all. Junior ISAs exist for kids, but those are separate. Parents or guardians manage them, and the child takes control at 18.

What about if you live abroad? You can keep your existing ISA open and still earn tax-free returns, but you can’t add new money unless you’re a Crown employee working overseas or married to one. If you’ve moved away permanently, you lose your ISA allowance for the year. Same goes if you’re not a UK resident — even if you’re a British citizen living in Spain or Canada, you’re not eligible. It’s about where you live, not where you’re from.

There’s also the question of ISA limits, how much you can put into each type of ISA without breaking the rules. Also known as the ISA contribution cap, it’s not just about the total — it’s about how you split it. For example, you can’t put £20,000 into a Lifetime ISA and then add another £20,000 to a Stocks and Shares ISA. The Lifetime ISA has its own cap: £4,000 per year, and that counts toward your overall £20,000. So if you max out your Lifetime ISA, you’ve got £16,000 left for other ISAs. And if you’re over 40, you can’t open a Lifetime ISA at all. Those rules don’t change just because you’re close to retirement.

And what if you’ve already paid into an ISA this year? You can’t switch providers mid-year and add more. Once you’ve used your allowance with one provider, you’re done. You can transfer the money later, but you can’t top it up again. That’s a common trap. People think moving to a better interest rate gives them a second chance. It doesn’t. The allowance is tied to the tax year, not the bank.

There’s no credit check. No minimum income. No employer involvement. If you’re a UK resident, over the right age, and you’ve got cash to put aside, you’re eligible. That’s it. No one’s holding back the ISA because you’re self-employed, on benefits, or just starting out. It’s designed to be open to everyone — as long as you follow the rules.

Below, you’ll find real answers to the questions people actually ask about ISAs — from how to open one with no money down, to what happens if you die with money in it, to whether you can use it to buy a house. These aren’t theory pieces. They’re practical guides written by people who’ve been through it. Whether you’re saving for a car, a house, or just want to stop losing money to inflation, you’ll find something here that fits your situation.