ISA FAQs

How is my ISA managed?

When you set up an ISA with us, we put the ISA wrapper on your account as a whole. This means that you can create as many pots as you like — from paying for your children's education to buying a new home — and don't have to worry about which one is your ISA pot. We'll automatically count every contribution towards your ISA allowance until you reach the limit.

When you make a withdrawal from your account, we’ll sell investments outside your ISA first. This helps you keep as much money as possible in your ISA, so you continue to benefit from its tax-free status.

Can I transfer existing investments to you?

Yes, you can transfer Stocks and Shares ISAs to J.P. Morgan Personal Investing. However, your existing investments will be sold and the money transferred as cash. We will then invest your Stocks and Shares ISA on your behalf, in accordance with our investment strategy.

If I transfer an ISA to you, will it stay ISA wrapped?

Yes. Any ISA transfers we receive will retain their ISA tax-free status, so your investments will continue to be exempt from UK tax. To retain your ISA’s tax-free status, you’ll need to initiate an ISA transfer with us and we’ll handle the transfer directly with your current provider. Do not withdraw the funds from your existing ISA yourself as this could result in the loss of your ISA’s tax benefits.

Can I invest more than the ISA limit?

Absolutely — although investments outside your ISA (and not in a pension or Lifetime ISA) will be subject to tax.

What happens if I pay too much into my ISA?

If you contribute more than your £20,000 annual allowance with us, we’ll automatically move that money into a General Investment Account (GIA), so that you don't go over your limit. Please note that a GIA does not provide the tax benefits of an ISA.

If you have ISAs with several providers, it can become harder for you to track whether you're going over your limit. You need to check you're not contributing more than your annual allowance across all your providers.

If you do contribute more than your allowance due to a contribution to your account with us, please get in touch, and we'll try and rectify this. In some circumstances, your ISA could become void.

To help avoid this, you can set a limit on how much you want to contribute to your ISA with us. When you set up your ISA, we’ll ask if you want to set a limit with us. If you’ve got ISAs with several providers, this may help in preventing you from investing more than your annual ISA allowance.

I have a General Investment Account (GIA), with no ISA wrapper. What happens if I want to add one?

Opening an ISA once you have an account with us is easy — just log in and click on the links to ‘Open a current year ISA with J.P. Morgan Personal Investing’. We offer two options as to what happens to your existing investments.

1. We can transfer your current GIA holdings into your ISA, up to the ISA limit you set, at our next investment cycle. We do this by selling the GIA holdings and buying them back in the ISA wrapper at the same time, so they are not out of the market. Any gains on the sale of GIA investments may be subject to Capital Gains Tax (CGT). To move your GIA holdings into a new ISA, set up your ISA with us first, then use the funds redistribution feature. This support article provides more detail on funds redistribution.

2. Alternatively, you could instruct us to keep your present portfolio invested, and only apply new contributions to your ISA. This means that your current holdings would remain in a taxable account.

What happens to my ISA when I die?

After you die, your ISA becomes a ‘continuing ISA’ for a limited amount of time. The continuing ISA will remain open until:

• the administration of your estate is completed; or
• the ISA is closed by your executor.

If neither of these two things occur within three years and one day from your date of death, we’re required to close it.

Prior to the ISA being closed, it can continue to grow, and it retains its tax benefits. While no one can contribute more money to the ISA during this time, any further growth or returns aren’t subject to income tax and capital gains tax. However, as your ISA forms part of your estate, it is subject to inheritance tax.

You can leave your ISA to whomever you wish in your will.

If you have a Stocks and Shares ISA, your executor can instruct us to either sell the investments and pay the cash proceeds to the administrator or your beneficiary, or the investments within the ISA can be transferred without being sold.

Are ISAs subject to inheritance tax?

Yes. ISAs are subject to inheritance tax, just like any other asset.

If you leave your ISA to anyone other than a spouse, civil partner, charity or a community amateur sports club, and your estate is worth more than £325,000 (or up to £500,000 if you’re leaving your home to direct descendants) – they’ll have to pay inheritance tax.

However, if you leave your ISA to your spouse or civil partner, they won’t pay inheritance tax; this is the same for all your assets.

Didn't see your question?

Get more answers in our ISA support section, or the HMRC ISA FAQs.