Information Regarding IBUK ISA (Individual Savings Account)

1. What is an ISA and what benefits does it offer me?
 
An ISA (Individual Savings Account) is a tax-free savings or investment account to help you grow your money. The interest on cash accumulates on a tax-free basis, as does income and capital gains made on investments. A Stocks and Shares ISA is not an investment in its own right. The best way to think of a Stocks and Shares ISA is as a ‘wrapper’ with which you can shelter your savings and investment from tax.  The IBUK Stocks and Shares ISA lets you choose from a range of investments (see below section ‘What can I invest in?’). You can select and manage your IBUK Stocks and Shares ISA yourself or arrange for your financial advisor to do so on your behalf (see below section ‘Can I appoint a financial advisor to manage on a discretionary basis, my IBUK Stocks and Shares ISA?’).
 
2. What is the Junior ISA?
 
The Junior ISA functions similarly to our Stocks and Shares ISA, except the maximum investment for a Junior ISA in the tax year is £9,000. If you are the parent or guardian of a junior (under the age of 18), you can open them a Junior ISA which can accept contributions from anyone. The Junior ISA offers tax-free contributions and the ability to invest in eligible worldwide financial products at low commissions while the junior’s investment is locked away until they are 18 years of age.
 
3. Can you lose your money on a Stocks and Shares ISA?
 
The value of investments you hold in your IBUK Stocks and Shares ISA and the income you receive from them can fall as well as rise. As a result, you may get back less than you invested. Past performance is not an indication of future performance, and some investments need to be held for the long term to achieve a return. The IBUK Stocks and Shares ISA is an execution only service, we do not provide investment advice. If you need advice about whether an investment is suitable, you need to consult a suitably qualified financial advisor.
 
4. Can I appoint a financial advisor to manage on a discretionary basis, my IBUK Stocks and Shares ISA?
 
Yes, you can appoint a financial advisor to manage your IBUK Stocks and Shares ISA on your behalf. Click on the link for additional details:
 
 
5. Under what IBUK account type can I open my IBUK Stocks and Shares ISA?
 
You can only open an IBUK Stocks and Shares ISA under a GBP cash account type. A cash account requires that all transactions are made with available cash or long positions.
 
6. What ISA categories are offered at IBUK?
 
IBUK only offers Stocks and Shares ISAs and Junior ISAs.
 
7. Who is eligible for an IBUK Stocks and Share ISA?
 
In accordance with HMRC rules, any individual who is a resident for tax purposes in the UK and over the age of 18.
 
Click on the link for additional details:
 
 
8. What is a flexible Stocks and Shares ISA?
 
A Flexible Stocks and Shares ISA allows the individual to withdraw funds from their Stocks and Shares ISA and deposit the funds back in, within the same tax year, without the transactions effecting their annual ISA allowance.
 
9. Does IBUK offer a flexible Stocks and Shares ISA?
 
No, an IBUK Stocks and Shares ISA isn't flexible. That means you can take money out, but it'll count towards your annual ISA allowance if you pay it back in the same tax year.
 
10. What can I invest in?
 
You can invest in any of the following investments: Stocks and Shares ISA ('Qualifying Investments'') are listed below:
  • Shares
  • Securities issued by Companies
  • Recognised UCITS
  • Depository Receipts, American Depository Receipts and American Depository Shares
 
11. What exchanges does IBUK support?

HMRC recognised exchanges supported by IBUK:
Country
Exchange
Australia
The Australian Stock Exchange (and any of its stock exchange subsidiaries)
Austria
Vienna Stock Exchange
Belgium
NYSE Euronext Brussels
Canada
NYSE Euronext Brussels
Montreal Stock Exchange
Toronto Venture Exchange (TSX Venture Exchange)
France
MATIF
MONEP
Germany
Frankfurt Stock Exchange
Stuttgart Stock Exchange
Hong Kong
Hong Kong Stock Exchange
Italy
Italian Stock Exchange (Borsa Italia)
Japan
Tokyo Stock Exchange
Osaka Stock Exchange
Lithuania
NASDAQ OMX Vilnius
Mexico
Mexico Stock Exchange
Poland
Warsaw Stock Exchange
Singapore
Singapore Exchange Limited
South Korea
Korea Exchange
Spain
Spanish Stock Exchange (Bolsa de Valores in Madrid)
Switzerland
Swiss Stock Exchange (SIX Swiss Exchange)
United Kingdom
London Stock Exchange
United States of America
BATs Exchange Inc
Chicago Board Options Exchange
Chicago Stock Exchange
International Securities Exchange
National Stock Exchange
New York Stock Exchange
NYSE ARCA
NASDAQ OMX PHLX
NASDAQ
 
12. What is the 2021/2022 ISA Allowance?

For the 2021/22 tax year the annual ISA allowance is £20,000 per person. Any of the ISA allowance that goes unused in the current tax year cannot be rolled over to the subsequent tax year. You can divide this cash allowance across multiple ISAs, provided that not more than 1 of each type of ISA is subscribed to in any given tax year. NB. If you are already subscribed to another Stocks and Shares ISA in the current tax year, you are not permitted to subscribe to our Stocks and Shares ISA for the remainder of the tax year.
 
13. How do I make subscriptions to my IBUK Stocks and Shares ISA?

Deposits are limited to £20,000 per tax year and can be funded in GBP only. Please select Transfer & Pay followed by Transfer Funds within Client Portal to generate the correct wire instructions.
 
14. What is the annual fee for an IBUK Stocks and Shares ISA?
 
There is no annual ISA fee. Other costs and charges apply, see point 14 for more information.
 
15. What are the charges for an IBUK Stocks and Shares ISA?
 
Minimum monthly activity fee of £3. Generate £3 in commission per month and no fee is applicable. If you generate less than £3 commission the difference is charged.
 
One free withdrawal per month. Thereafter, £7 withdrawal fee is applicable.
 
Click on the link for an overview of our commissions:
 
 
16. What transactions are allowed and what transactions are not allowed in an ISA?
 
a) Example of allowed transactions
An individual subscribes £15,000 into a Stocks and Shares ISA, £3,000 into a Cash ISA and £2,000 into a Lifetime ISA. No more than 1 of each type of ISA was subscribed to in the tax year, and the annual ISA allowance of £20,000 was not exceeded.
 
b) Example of disallowed transactions
An individual subscribes £10,000 into one Stocks and Shares ISA, £2,000 into another Stocks and Shares ISA, and the remaining £8,000 into a Cash ISA. While the individual did not exceed the annual ISA allowance of £20,000, they subscribed funds into more than 1 Stocks and Shares ISA.
 
17. How do I transfer my Stocks and Shares ISA from my current ISA manager to IBUK?
 
NB. In-Specie and cash transfers will not be available until later in Q3 2022
 
You will need to submit a transfer instruction to IBUK via Client Portal, and if, in IBUK’s discretion IBUK decides to accept the transfer, IBUK will instruct your existing ISA manager to transfer your investments (where IBUK supports such investments) and/or cash into your IBUK Stocks and Shares ISA. Where IBUK does not support all your investments held at your existing ISA Manager, you can either liquidate these investments yourself prior to submitting your transfer instruction to IBUK via Client Portal (any cash proceeds of such liquidation will be transferred into your IBUK Stocks and Shares ISA) or you can instruct IBUK (as part of your transfer instruction via Client Portal) to do so on your behalf.
 
18. How do I transfer an ISA out of IBUK to another provider?
 
Any transfer out request from IBUK must be requested from the Client Portal.
 
19. What are the Transfer Charges?
 
IBUK does not charge for transfers (the transferring ISA manager may charge you for transferring investments or cash proceeds to us).
 
20. Can I cancel my IBUK Stocks and Shares ISA?

You have a legal right to cancel your IBUK Stocks and Shares ISA if you change your mind.
 
21. How can I cancel my IBUK Stocks and Shares ISA?
 
If you want to cancel your IBUK Stocks and Shares ISA, you must do so within 14 days from the date you receive our email confirming the establishment of your IBUK Stocks and Shares ISA (a cancellation must be requested from the Client Portal).
 
Cancellation rights will also apply to the receipt of transfer payments. You have 14 days from the date you receive our email acknowledging the transfer to exercise your right to cancel (a cancellation must be requested from the Client Portal). NB. If you cancel the transfer of your Stocks and Shares ISA from another ISA manager to us, that ISA manager may not agree to accept the Stocks and Shares ISA back. This may result in that Stocks and Shares ISA being closed, and the tax benefits being lost.
 
22. How safe is your IBUK Stocks and Shares ISA?

Interactive Brokers (U.K.) Limited (IBUK) is authorised by HMRC to act as an ISA manager and is authorised and regulated by the Financial Conduct Authority. Your account is held with IBUK’s US affiliate, Interactive Brokers LLC, regulated by the US SEC and CFTC and member of the SIPC (www.sipc.org) compensation scheme.
 
IBUK is part of the Interactive Brokers Group. The Interactive Brokers Group, Inc. is a listed public company trading on U.S. markets under the symbol “IBKR” with a market capitalization of over USD 30 billion, as of Nov 17, 2021. On a consolidated basis, IBG LLC exceeds USD 10 billion in equity capital, over USD 6.2 billion in excess of regulatory requirements. IBG LLC's owners are the public company, Interactive Brokers Group, Inc. and the firm's employees and their affiliates. Client money is segregated in special bank or custody accounts, which are designated for the exclusive benefit of clients of Interactive Brokers. Interactive Broker’s client equity as of Oct 30, 2021 was USD 380.9 billion.
 
Your eligible assets are protected from loss under the US SIPC at an amount of up to USD 500,000 (subject to a cash sublimit of USD 250,000). As with all securities firms, this coverage protects against the failure of a broker-dealer, not against the loss of market value of securities.
 
You will not get any compensation only because the value of your investments falls.
 
23. How can I file a complaint with IBUK?

Customers are actively encouraged to use the Client Portal Message Center for prompt attention. However, customers may file a complaint by the following methods:
 
a) By creation of a WebTicket in Client Portal: This is the recommended method by which to create a complaint. Tickets are processed faster than emails and are also more secure.
 
b) Email sent to isa@interactivebrokers.co.uk: Please note that in order to ensure that your complaint is flagged and given the required attention, we kindly ask you to state "COMPLAINT" in the subject header field of the email.
 
c) By Letter, addressed to:
Complaints Handling
Interactive Brokers (U.K.) Limited
Level 20, Heron Tower
110 Bishopsgate
London EC2N 4AY
United Kingdom
 
d) By Calling IBUK Customer Service using the telephone numbers provided on the IBUK website: Please note that this method is discouraged as in most cases we will need specific details to investigate your complaint. Whilst you can lodge your complaint via phone, we will need you to provide follow-up details by one of the methods described above.
 
24. Are Corporate Actions allowed under my IBUK Stocks and Shares ISA?

Allowed to participate but cannot exceed the annual funding limit. If it were to exceed the subscription limit, the shares should be transferred to a non-ISA account.
 
25. FX Handling and your IBUK Stocks and Shares ISA
 
IBUK will automatically convert currencies when trading non-GBP denominated securities. To do this, IBUK will engage in “spot” currency transactions on your behalf in order to settle your buy orders or convert the proceed of a sell order. IBUK will base the exchange rate off the spot exchange rate at the time of trade 0.03% fee.
 
The below example illustrates the cost in GBP of a $1,000 USD Trade
 
Example GBP/USD Spot Rate: 1.3432/1.3433
Order Type FX Conversion Rate inc 0.03% fee Cost of $1000 USD Trade
Buy 1.3430 £744.61
Sell 1.3435 £744.31
 
26. What if I have additional questions?

Our Client Services team is on hand to help via phone or email. If you have any questions about your IBUK Stocks and Shares ISA, please contact our dedicated ISA Support team who are available 8am to 6pm GMT Monday to Friday, excluding public holidays.