Cash ISA: Can You Have a Joint ISA or Share It in Joint Names?

Can you have a joint ISA? While you can have combined bank accounts with your spouse, ISAs cannot be opened under a joint name, so this is one of the differences between ISAs vs Savings Accounts. However, there is a circumstance in which you can add a third party to the equation, and it involves the junior ISA. At age 16, the child in whose name the account has been raised can take control of the account, but cannot withdraw money until they reach 18.

On the adult ISA front, when deciding with your spouse if to open an ISA or, a SIPP, or another savings scheme, keep in mind that you cannot open a joint ISA account, so weigh your options accordingly.

Can I have 2 ISAs?

You are allowed to own an unlimited number of ISAs during your lifetime. While now the total number of ISA accounts you can open is unlimited, before the 2024/2025 tax year, you were only permitted to open one of each type of ISA every tax year. By implication, by opening a brand-new batch of ISAs each year, it would be possible to accumulate dozens of various ISAs. In real life, you might choose to be pickier.

Can you have 2 ISA in the same year?

You used to only be able to open more than one type of ISA in the same year but were limited to opening one ISA account of each type per year. However, in the Autumn budget of 2023, then chancellor Jeremy Hunt announced that from April 6, 2024, you could open and contribute to multiple ISAs, providing the total of so doing did not exceed the £20k annual ISA allowance.

Can I give my ISA to my husband?

Spouses can pass on their ISA investments to you if they have passed away. You can also inherit their ISA allowance. For example, if your husband has passed away, along with your standard ISA allowance, you can add a tax-free sum equal to the value of your spouse’s ISA at the time of their death.

What happens if you pay into two ISAs?

The changes to opening and contributing to ISAs, which came into effect on April 6, 2023, have made things much simpler for investors. Your ISA allowance can be spread out not only among several types of ISAs but also across multiple ISAs of the same type. Some of the best ISAs are Cash ISAs, Stocks and Shares ISAs, and LISAs..

If you have multiple types of ISAs and you are looking to consolidate, think about making an ISA transfer. When you transfer your ISAs, it’s an excellent method to manage your money and accounts if you have accounts from prior tax years. When consolidating your ISA accounts, keep the FSCS limit of £85,000 in mind.

Can a husband and wife have an ISA each?

Can you have a joint ISA as a married couple? No, each spouse must have their own ISA account. In order to be able to open an ISA, you must be a resident of the UK or, if you do not reside in the UK, a Crown servant (such as in the diplomatic or overseas civil service) or their spouse or civil partner. Since opening an ISA under a joint name is impossible, you and your spouse will need to open separate ISAs. However, this also doesn’t stop you from making contributions to your spouse’s ISAs as long as you don’t exceed the annual allowance.

Setting up the closest thing to a joint ISA account

Although the answer to the question, “Can you have a joint ISA account?” is no, as they are individual savings accounts, with the word “individual” meaning just that, you can have a joint ISA in the sense of coordinating your investment activities. Each individual account remains the property of the individual in whose name the account was started. Neither the money nor the ISA allowance can be shared. It is possible, however, to contribute your own money to your partner’s ISA.

The UK government rules say that subscriptions from third parties are acceptable unless the ISA manager is in possession of information that indicates that the cash does not belong to the ISA account holder. But in actual fact, ISA providers tend to believe this doesn’t refer to cash given to the account holder by someone else as a gift. So, you want to gift money to your spouse or partner, not expecting its return (the meaning of a true gift), and they decide to put it into their ISA, which is perfectly legal and above board.

While the answer to “Can you have a joint cash ISA?” or “Can you have a joint stocks and shares ISA?” remains no, you can use money that has been gifted to maximise your savings as a couple, and this is the closest thing there is to having a joint ISA.

Can I give my wife money to put in an ISA?

Not only can you pay into each other’s ISAs, but doing so is smart financial planning since you cannot have a joint stocks and shares ISA or joint cash ISA. If you’re married or in a civil partnership, you should take your spouse’s ISA allowance into account in addition to your own. Each adult gets an annual ISA allowance, and viewing your allowance and your spouse’s allowance together can help you plan your finances more tax-efficiently.

For example, let’s say that you have a Stocks and Shares ISA, but you’ve reached your allowance in terms of the capital gains you can make from your investments. While you can’t open a joint stocks and shares ISA, for the investments you have that fall outside of your ISA allowance, you could do what is called a “Bed and Spouse and ISA”, in which you sell the investments and rebuy them under your spouse’s name, who then invests them in an ISA where they won’t be subject to future income or capital gains taxes.

Can my wife inherit my ISA?

Can you have a joint ISA? No, but you can pay into each other’s ISAs with gifted money. Doing so is smart financial planning since you cannot have a joint stocks and shares ISA or joint cash ISA. If you’re married or in a civil partnership, you should take your spouse’s ISA allowance into account in addition to your own. 

Managing joint coordinated ISA accounts: tips and best practices

Each adult gets an annual ISA allowance, and regularly viewing your allowance and your spouse’s allowance together can help you plan your finances more tax-efficiently. It is quite common for one spouse or partner to earn more money than the other. But in the way that both put equal energy and commitment into the relationship and the raising of families, both can share the joint financial rewards of their labours. 

Can you have a cash ISA in joint names? No, but you can coordinate your money in a way that benefits you both. You can make your money work harder for you by optimising both of your annual ISA allowances. On the subject of making your money work harder, you need to be aware of bed and spouse.

Negotiating CGT with a bed and spouse ISA strategy

Supposing you have a Stocks and Shares ISA, but you’ve reached your allowance in terms of the capital gains you can make from your investments. While you can’t open a joint stocks and shares ISA, for the investments you have that fall outside of your ISA allowance, you could do what is called a “Bed and Spouse and ISA”, in which you sell the investments and rebuy them under your spouse’s name, who then invests them in an ISA where they won’t be subject to future income or capital gains taxes.

Can my wife inherit my ISA?

The answer to ‘Can you have a joint ISA with your spouse or partner to maximise your combined tax-free savings potential?’ remains no. But when someone passes away, money in an ISA account can still be tax-free as long as it is left to your spouse or civil partner. It is, therefore, exempt from inheritance, income, and capital gains taxes, even when withdrawn from the ISA with one proviso. Using an additional permitted subscription (APS).

Through an APS, the surviving spouse will receive an additional ISA allocation that is equal to the amount of the deceased partner’s money in their ISA at the time of their death.

Can I have 2 ISA accounts with different banks?

Can you have a joint ISA account? You now know that you can’t.  But you can have as many ISAs with as many different banks or providers as you like. The only exception is the Junior ISA, where the rule remains that a child can only have one of each type of ISA (cash or stocks and shares) at any time.

FAQ

Can you have a cash ISA in joint names?
Unfortunately, the answer is no. In exploring the question “Can you have a joint ISA,” it’s clear that while you can have combined bank accounts with your spouse, ISAs cannot be filed under a joint name. This distinction is one of the key differences between ISAs and savings accounts.

What is a “Bed and Spouse and ISA”?
This is a financial strategy in which you sell the investments and rebuy them under your spouse’s name, who then invests them in an ISA where they won’t be subject to future income or capital gains taxes.

Can my spouse inherit my ISA after I pass away?
While you cannot open a joint ISA with your spouse, you can inherit their ISA allowance if your spouse or civil partner passes away. In addition to your regular ISA allowance, you may also include a tax-free sum up to either the amount they had in their ISA at the time of their death or their ISA’s value once it is closed.