FAQ

What is an ISA?

An ISA (Individual Savings Account) is a UK account that lets you save or invest tax‑free. Returns inside an ISA (interest, dividends and capital gains) aren’t taxed, and you don’t normally report them on your tax return. For the 2025/26 tax year, you can pay in up to £20,000 across all your ISAs (Cash, Stocks and Shares, Innovative Finance and Lifetime ISAs).

What is the difference between the DIY ISA and a Managed ISA?

With a Managed ISA, your portfolio is created and managed for you by a team of experts. You will get a globally diversified portfolio matched to your goals and personal risk profile, backed by smart technology and human expertise. Moneyfarm’s Asset Allocation team monitors and regularly rebalances your ISA to maintain its optimal structure. Your ISA portfolio will stay aligned with your personal risk profile and investment goals.

With a DIY ISA, you pick your own investments – choosing from over 1,000+ stocks, ETFs, bonds and mutual funds. This gives you full control to choose and manage your own investments within your ISA wrapper. The DIY ISA allows you to personalise your portfolio, to align with your values and financial goals.

What is the difference between a Stocks and Shares ISA and a Cash ISA?

The difference between a Stocks and Shares ISA and a Cash ISA is the way in which your money grows and the risk you take. Our Cash ISA a Qualifying Money Market Fund (QMMF) which holds mainly short-term, low-risk financial assets, aiming to maintain a stable value; it is designed to keep your cash while earning a bit of interest. It is called “qualifying” because it meets certain regulations that allow them to be considered as cash equivalents. A Stocks and Shares ISA is an investing account for shares, ETFs, funds and bonds. You might consider a Cash ISAs for short‑term goals; consider Stocks and Shares ISAs for 3–5+ years. Both are tax‑free in the UK, with a £20,000 allowance for 2025/26.

What are the tax benefits of a Stocks and Shares ISA?

ISAs have generous tax benefits that can help you maximise your investment returns. When you invest in an ISA, you’re not charged Capital Gains Tax (CGT) on any returns you make when you sell your investments.

How can I transfer my ISA to eToro?

To transfer an ISA to eToro (powered by Moneyfarm), open or log in to your eToro ISA and choose the ISA transfer option to complete the transfer form. Moneyfarm then manages the transfer directly with your current provider so your tax‑free status is preserved; don’t withdraw the money yourself. As a guide, UK rules say transfers should take up to 15 working days for Cash ISAs and up to 30 calendar days for Stocks and Shares ISAs and Managed ISAs. The time taken depends on the provider you are transferring from.

Can I transfer my stocks and shares ISA to eToro?

Yes, you can transfer ISAs (including Stocks and Shares ISAs, Cash and other managed ISAs), but the assets will be sold and transferred as cash to be invested by you into your new portfolio or stocks of choice, not the original stocks.

Can I withdraw money from my Stocks and Shares ISA?

You can withdraw money from your ISA whenever you need to, without it impacting your ISA allowance from that tax year. The eToro ISA powered by Moneyfarm does not charge you to withdraw from your ISA, as we know how important it is that you have flexible access to your investments.

However, please be aware that you may forfeit any promotional offers when with withdrawing, so please check the terms and conditions of the relevent ISA offer before you withdraw.

Who can open a Stocks & Shares ISA?

To open a Stocks and Shares ISA, you must be 18 or over and a UK resident for tax purposes, with exceptions for Crown servants and their spouses/civil partners serving overseas.

Do you offer a Cash ISA?

Yes we do! Check out our Cash ISA page for more information.

Where is my money held?

As an investment firm authorised and regulated by the FCA, Moneyfarm is obligated to segregate client funds and assets. This means that your money and investments are held separately from Moneyfarm’s own bank account and cannot be mixed with their own funds.

Moneyfarm believes that the safest way of looking after your investments is to appoint a custodian bank which holds your money and the investments we purchase on your behalf, with a reference number unique to you. Moneyfarm holds your money and investments using carefully selected, regulated financial institutions such as Barclays and Saxo Capital Markets UK Ltd, and Moneyfarm ensures that these institutions meet the relevant criteria to keep your money safe.

Your funds are covered by the Financial Services Compensation Scheme (FSCS). In the event of the firm’s failure, Moneyfarm is covered by the FSCS in relation to investment products which means you would be eligible to claim up to £85,000 (across all brands operating under MFM Investment Ltd) if there was any shortfall in the assets held for you, or if you had another claim against Moneyfarm relating to your investments.

Is Moneyfarm regulated?

Yes, Moneyfarm is authorised and regulated to give investment advice and provide a discretionary service by the Financial Conduct Authority (FCA) no. 629539. Details of their authorisation can be found on the Financial Services Register here.

What is a flexible ISA?

A flexible ISA allows you to withdraw money and then replace it within the same tax year without affecting your annual ISA allowance. This means any funds you take out can be returned, preserving your full tax-free savings limit for that year.

What are the risks?

While offering tax efficiency, these are subject to market risk and the potential for capital loss. Investments in individual stocks or shares carry high market risk, as prices can be volatile and are influenced by company performance and broader market conditions. Diversification is essential to help manage this risk.

What is the annual ISA allowance?

This tax year you can invest up to £20,000 in your ISA. The tax year runs from 6 April until 5 April the following year and that’s when your ISA allowance automatically refreshes.

You can pay your whole allowance of £20,000 into a Stocks and Shares ISA, a Cash ISA, or a combination of the two. Even if you have an ISA elsewhere, you can still open a Stocks and Shares ISA with the eToro ISA powered by Moneyfarm, and you can also transfer over an old ISA to your new account. You can choose between making a lump sum investment, and/or making regular contributions throughout the tax year. Your eToro ISA powered by Moneyfarm is flexible to suit you. Your annual ISA allowance expires at the end of the tax year and any unused allowance will be lost. It’s a case of ‘use it or lose it’, as your allowance can’t be rolled into the next year. With the eToro ISA powered by Moneyfarm, you can invest more than the ISA allowance, for example, with a General Investment Account, but any investments outside the ISA wrapper won’t be sheltered from tax.

How does the cashback offer work?

To understand how the cashback offer works, please refer to the promo terms and conditions here.