Our Robinhood UK stocks & shares individual savings account (ISA) is a tax-efficient investment account. It lets you invest in the US stock market without having to pay UK taxes on any gains you might make. Whereas a cash ISA usually comes with a defined expected return, the performance of your stocks & shares ISA depends on the returns of the investments inside it, incorporating the risk of the stock market.

Note that tax treatment depends on individual circumstances and may be subject to change in the future.

To open a Robinhood stocks & shares ISA, you’ll first need a Robinhood UK account. What you need to get started has details about the requirements for opening both a Robinhood account and a stocks & shares ISA. When you open a stocks & shares ISA, you must read and review the product information and terms. After opening the account, you can access these documents:

1. Go to Account (person icon) → Menu (3 bars) → Documents
2. Select Agreements, where you’ll find:

• ISA Product Terms and Conditions
• ISA Declaration Form
• ISA Product Key Features
• Limited Margin Agreement

To add money and invest:

1. Select Stocks & shares ISA → Add money
2. Select Find investments

You can also transfer an existing ISA into your Robinhood stocks & shares ISA:

1. Select Transfer in from another ISA
2. When prompted to select the type of ISA you’re transferring from, select:

• Stocks & shares ISA to liquidate current positions and transfer cash ready to re-invest
• Cash ISA to enter an amount to transfer from an existing cash ISA

3. Select your ISA provider from the list
4. Enter your ISA account number
5. Confirm your account details
6. Follow the on-screen prompts to get the transfer started. We’ll contact your provider to initiate the transfer and email you once it’s complete. Check the transfer status anytime in your Robinhood account.

Your annual allowance for an ISA is £20,000. This limit is the total value across the different types of ISAs for each tax year (6 April to 5 April of the next year). This includes any ISAs you hold outside of Robinhood. This allowance doesn’t carry over if you don’t invest it all each year.

You can open and invest in as many ISAs as you like as long as you don’t exceed the £20,000 contribution limit across all of your ISAs each tax year.

You can sell investments and withdraw money from a Robinhood stocks & shares ISA at any time. For example, let’s say you deposited £5,000 into your stocks & shares ISA, and then decided to withdraw some or all of it. Assuming you haven’t made any deposits into any other ISA outside of Robinhood, your remaining contribution allowance for that tax year would still be £15,000.

All investments carry risk but your overall risk profile and the natural ups and downs that your investments experience are all due to the investments you choose, not the account they’re in. Stocks & shares ISAs are not taxed on the returns, which means you get to keep more of any returns you might make. They are sometimes referred to as ‘tax wrappers’ because they determine what tax rules apply to the investments held, let you build returns on your investments over time, and can shield returns from certain taxes, such as capital gains. This means that, rather than the account itself carrying risk, you get to choose your own risk level through the investment decisions you make.

With a Robinhood stocks & shares ISA, the minimum investment or trade allowed is £1 because you can invest in fractional shares for certain stocks. This gives you the flexibility to invest in companies with highly priced shares. Fractional shares can also help you manage risk more conveniently. Since you’re not locked into purchasing full shares, you can diversify your portfolio with smaller amounts of money.

With your ISA, you can trade the following order types:

• Market orders: Whole or fractional share-based market orders or dollar-based market orders during regular market hours. You can also trade whole share-based market orders during extended-hours trading and in our 24-Hour Market, as applicable.
• Limit orders: Whole share-based limit orders during regular market hours, extended-hours trading and in our 24-Hour Market, as applicable.

No, the Robinhood stocks & shares ISA is not a flexible ISA. Because this is a non-flexible ISA, the used allowance amount doesn't change when you withdraw money out of it.

Yes, you can transfer your stocks & shares ISA investments or cash out of Robinhood (or any ISA provider) to another ISA manager in a secure and compliant way, while maintaining the tax-advantaged status of your account:

1. Contact the ISA provider that you want to transfer out to and give them your ISA account details they require to get the process started.
2. The outside ISA provider will then contact Robinhood to initiate the transfer.

An ISA transfer won’t have any capital gains tax or dividend tax implications if the assets and cash never leave the ISA wrapper during the transfer process. So be sure to initiate the transfer process through us. Note that shares must be sold to allow for a cash transfer, after which assets can be bought on the new platform.

Keep in mind that if you withdraw cash separate from the transfer process, it isn’t protected by the ISA wrapper and will be subject to any applicable taxes.

You can deactivate or close your ISA by following the same steps in Deactivate or close my account to deactivate or close your brokerage account. Note that you can transfer cash from your ISA to your Robinhood UK brokerage account or to an account with an outside ISA provider by initiating a transfer with them.

All investments involve risks, including the loss of principal. Tax treatment depends on your individual circumstances and ISA rules, which may change. Robinhood does not provide investment advice. Individual investors should make their own decisions.