🇬🇧 UK

Can I pay money directly into my adult child’s ISA?

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UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

You can give an adult child money for their ISA, but the child owns the ISA and uses their own allowance. Whether a provider lets you pay directly from your bank account is a provider-specific payment rule, so check before sending the money.

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Check the ISA provider’s accepted payment method before sending money directly, and use the child’s own ISA account for the subscription record.

Check GOV.UK ISA rules

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The ISA belongs to your adult child

An adult ISA is an individual account. GOV.UK says you must be 18 or over to open an ISA and that you cannot hold one jointly with someone else. If you give an adult child money for an ISA, the child remains the ISA investor and the subscription is made into their ISA.

The tax rule and the bank-payment rule are therefore separate. There is nothing unusual about a parent gifting money to an adult child, but the ISA manager can set the mechanics for how a subscription is funded.

Can the parent send the ISA payment directly?

There is no single provider-wide banking rule that guarantees every ISA provider will accept a third-party payment into an adult ISA. Some providers may accept deposits from another person, while others may require the money to come from a bank account in the ISA holder’s name or a linked account.

That means the answer to “is it legally allowed?” is less important than “does this particular provider accept it?” Do not send the payment first and ask later. An unrecognised payment can be rejected, delayed or returned.

The simplest route is a gift to the child first

You transfer the gift to your adult child’s normal bank account.
The child makes the ISA subscription from their own account using the provider’s usual process.
The child keeps the ISA statement and bank record showing the subscription.

This route avoids a third-party-payment dispute with the ISA manager. It also leaves a clear paper trail: you made a gift, and your child chose how to subscribe to their ISA within their available allowance.

The £20,000 allowance still belongs to the child

For 2026/27, the overall ISA subscription limit is £20,000 per individual. A parent’s ISA allowance does not combine with the child’s. Giving a child £2,400 does not create extra allowance; it simply gives the child money with which to use the allowance they already have.

Likewise, the child cannot use a parent’s unused ISA allowance. The subscription is tested against the child’s own total ISA subscriptions for the tax year.

The child chooses the ISA type

The gift can be used for a Cash ISA, Stocks and Shares ISA or another eligible ISA type, subject to the account’s own rules. The parent should not assume the child must use a particular product simply because the gift was intended for investments.

With a Stocks and Shares ISA, the investment risk belongs to the child because the ISA is their account. A parent can agree the purpose of the gift, but the investment decision and ownership of the ISA assets remain with the child.

What about inheritance tax?

Do not describe an ordinary family gift as “using up the ISA allowance”. The ISA allowance is about the child’s tax-advantaged subscriptions, while inheritance-tax rules concern gifts and the donor’s estate. The two regimes are different.

UK inheritance-tax treatment of gifts can depend on the type of gift, the donor’s estate and how long the donor survives after making it. If the purpose of the transfer is estate planning as well as helping the child, use a qualified adviser rather than relying on a single annual-gift number.

Keep the records simple

For a family gift, keep the bank transfer reference, the date and a note that the money was a gift. The child should retain the ISA subscription confirmation. If the child later withdraws or transfers the ISA, their provider can identify the transaction without having to explain why the original money came from a parent.

When direct payment may still work

If the child’s ISA provider expressly accepts third-party payments, a parent may be able to fund the subscription directly. Follow the provider’s exact instructions, including any reference number or linked-account requirement.

Do not assume that “directly into the ISA” is always safer. The safer process is the one the provider has designed and can reconcile to the child’s ISA record.

The cash ISA change from April 2027

From 6 April 2027, the cash ISA subscription limit for people under 65 is due to become £12,000 within the overall £20,000 ISA limit. If the child is under 65 and you are planning a substantial cash-ISA gift around that date, check the rules applying in the 2027/28 tax year rather than using the 2026/27 limit.

What is the least complicated way to do it?

For most families, gift the money to the child and let the child make the ISA subscription. It is transparent, provider-neutral and makes clear whose allowance is being used. Direct payment can be used when the ISA provider explicitly accepts it, but that is a provider process rather than a universal entitlement.

Worked example

Example: a parent wants to help two adult children. In 2026/27, Sam gifts £1,200 to each child. The gifts total £1,200 + £1,200 = £2,400.

Each child then subscribes £1,200 from their own current account into their chosen ISA. If neither child has other ISA subscriptions, each has used £1,200 of their own £20,000 annual limit, leaving £18,800 of allowance for that tax year.

The parent has not transferred part of their own ISA allowance. The money is a gift, and each adult child owns the ISA and investments. If the chosen provider accepts third-party ISA payments, the parent could instead pay according to that provider’s instructions, but checking the provider first is essential.

Can parents pay into an adult child’s ISA?#

Yes, but the money is being gifted to the adult child, who remains the ISA owner. The child’s ISA subscription uses the child’s own allowance, and the provider’s payment rules determine whether a parent can make the payment directly from the parent’s bank account. The child’s ISA allowance is therefore the figure that matters when the gift is invested.

Can I pay my daughter’s Stocks and Shares ISA directly?#

A parent can fund a daughter’s Stocks and Shares ISA with a gift, but the investment account belongs to the daughter. Whether the parent can pay the subscription directly depends on the platform’s accepted payment method, so the provider should be checked before the transfer is made. The account remains in the daughter’s name even though the parent supplied the money.

Does my child get extra ISA allowance if I give them money?#

Giving an adult child money does not create an extra ISA allowance. Each adult has their own annual ISA limit; for 2026/27 the overall limit is £20,000, regardless of whether the subscription money came from salary, savings or a gift. The source of the gift does not create an additional tax wrapper for the recipient.

Is it easier to transfer money to my child first?#

The cleaner universal route is for the parent to gift the money to the adult child and let the child make the ISA subscription. That keeps the gift and the ISA transaction clearly separate, although some providers may accept an instructed third-party payment instead. Using the child’s own bank account can also make the gift and the ISA subscription easier to evidence.

Does giving money for an ISA count for inheritance tax?#

A gift for an adult child’s ISA is a separate inheritance-tax issue from the ISA itself. The ISA wrapper does not make a lifetime gift automatically exempt from inheritance tax, so larger or regular gifts should be considered under the donor’s wider estate position. The tax treatment of the investment wrapper should not be confused with the separate rules for lifetime gifts.

Can an adult child put a parent’s money straight into a Stocks and Shares ISA?#

The economic source of the money can be a parental gift, but the ISA provider controls how subscriptions are accepted. The provider may require the ISA holder to fund the account from their own bank or a recognised linked account.

Will the cash ISA allowance change in 2027?#

Yes. From 6 April 2027 the cash ISA subscription limit for people under 65 is due to reduce to £12,000, while the overall ISA limit stays at £20,000. People aged 65 or over will retain the £20,000 cash ISA limit under the announced reform. The reform applies to new cash subscriptions from that date, not to the tax status of money already inside an ISA.

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Next question →Are regular saver accounts worth using for short-term savings?

Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.