In August 2025, Hargreaves Lansdown continues to offer one of the UK’s most established ISA platforms, providing both Cash ISA and Stocks & Shares ISA options. It allows individuals to invest or save up to £20,000 this tax year without paying UK income or capital gains tax on returns. The platform combines tax efficiency with a wide range of investment choices, making it suitable for both cautious savers and active investors.
Known for its long-standing reputation and comprehensive tools, Hargreaves Lansdown gives account holders access to shares, funds, ETFs, and ready-made portfolios. The addition of fractional share dealing in 2025 has made it easier to start with smaller amounts, while transparent fees help users understand their costs before committing.
With daily rate checks for Cash ISAs, curated fund lists, and expert research, the service aims to simplify decision-making while maintaining flexibility. Whether the goal is steady growth, income generation, or capital preservation, the August 2025 offering provides clear options for different investment styles and risk levels.
Overview of Hargreaves Lansdown ISA in August 2025
Hargreaves Lansdown offers a range of ISA options in 2025 with updated features such as fractional share investing and a platform fee of 0.35%. Investors can choose between self-directed portfolios or ready-made investment solutions, with access to a wide choice of funds, shares, ETFs, and investment trusts.
Key Features for 2025
In August 2025, the HL Stocks and Shares ISA allows investments up to the annual ISA allowance of £20,000. This can be spread across different ISA types, but the HL account focuses on market-based investments.
The platform now supports fractional shares, enabling investors to buy portions of higher-priced shares without committing to a full unit. This makes diversification more accessible.
The standard platform fee is 0.35% per year, capped for shares at £45 annually. Fund dealing is free, while share dealing costs £11.95 per trade, reducing for frequent traders.
Investors can access over 3,000 funds, UK and overseas shares, investment trusts, and ETFs. HL also offers research tools, fund shortlists, and model portfolios to support decision-making.
Account Types Available
Hargreaves Lansdown provides several ISA types to meet different needs:
| ISA Type | Key Purpose | Notes |
|---|---|---|
| Stocks and Shares ISA | Invest in shares, funds, ETFs | Suitable for growth and income investing |
| Junior Stocks and Shares ISA | Tax-efficient investing for children | Annual limit £9,000 |
| Lifetime ISA (LISA) | Save for first home or retirement | Government bonus of 25% on contributions up to £4,000/year |
The HL Stocks and Shares ISA can be self-managed or invested through HL Ready-Made Investments. These ready-made portfolios are built and managed by HL’s investment team, offering varying risk levels.
Transfers from other ISA providers are supported, with no charge from HL to receive transfers. Cash and investments can be moved in without losing ISA tax benefits.
Eligibility Criteria
To open an HL Stocks and Shares ISA, the applicant must be a UK resident aged 18 or over. Junior ISAs require the child to be under 18 and resident in the UK.
For a Lifetime ISA, applicants must be aged 18–39 at account opening. Contributions can continue until age 50.
Applicants must provide proof of identity and address. Accounts can be opened online, by post, or via the HL mobile app.
Non-UK residents cannot open a new ISA but may keep existing HL ISAs open without adding new contributions, subject to HMRC rules.
ISA Allowance and Tax Benefits
In the 2025/26 tax year, UK residents can shelter a significant amount of savings and investments from tax through an Individual Savings Account (ISA). The rules apply equally to cash, stocks and shares, innovative finance, and Lifetime ISAs, but the total subscription limit is shared across all types.
2025 ISA Allowance Limits
The ISA allowance for the 2025/26 tax year is £20,000 per individual. This is the maximum total that can be paid into one or more ISAs between 6 April 2025 and 5 April 2026.
Funds can be split between different ISA types in any proportion, provided the combined contributions do not exceed the £20,000 limit. For example:
| ISA Type | Contribution Example | Tax Year Limit Impact |
|---|---|---|
| Cash ISA | £8,000 | Counts towards £20,000 |
| Stocks & Shares ISA | £12,000 | Counts towards £20,000 |
| Total | £20,000 | Limit reached |
Unused allowance cannot be carried forward to the next tax year. Each person has their own allowance, so couples can invest up to £40,000 between them.
Capital Gains Tax Advantages
Investments held within a Stocks and Shares ISA are fully exempt from Capital Gains Tax (CGT). This means any rise in the value of shares, funds, or bonds inside the ISA can be realised without triggering a CGT bill.
In the 2025/26 tax year, the standard CGT annual exempt amount outside an ISA is £3,000. Gains above this threshold are taxed at rates up to 20% for most assets, or 28% for residential property.
By using an ISA, investors can avoid tracking gains for tax purposes and remove the risk of exceeding the CGT allowance. This can be especially valuable for long-term portfolios where capital growth is expected.
Dividend and Income Tax Exemptions
Dividends received within an ISA are not subject to Dividend Tax, regardless of the amount. Outside an ISA, the dividend allowance for 2025/26 is £500, with tax rates of 8.75%, 33.75%, or 39.35% depending on income band.
Similarly, interest earned in a Cash ISA is free from Income Tax. This is separate from the Personal Savings Allowance, which is £1,000 for basic rate taxpayers, £500 for higher rate, and £0 for additional rate.
Holding income-generating assets in an ISA can therefore protect returns from erosion by tax, especially for higher earners or those with substantial investment income.
Investment Options with Hargreaves Lansdown ISA
Hargreaves Lansdown provides ISA products that allow individuals to invest or save tax-efficiently within the annual £20,000 allowance.
Each account type offers different features, risk levels, and potential returns to suit varying financial goals.
Stocks and Shares ISA Choices
The Stocks and Shares ISA allows investment in shares, funds, investment trusts, ETFs, and corporate or government bonds.
Investors can choose from thousands of UK and international shares, alongside a wide range of professionally managed funds.
Hargreaves Lansdown offers ready-made portfolios for those who prefer a managed approach.
Alternatively, investors can build their own portfolio using research tools, market data, and analyst insights available on the platform.
Charges include a platform fee, typically up to 0.45% annually, plus fund or share dealing costs.
Capital is at risk, and returns depend on market performance, making this option more suited to medium-to-long-term goals.
Cash ISAs and Fixed Rate Options
While Hargreaves Lansdown is best known for investment ISAs, it also provides Cash ISA access through its Active Savings service.
This service lets users place ISA funds into savings products from multiple banks and building societies without opening separate accounts.
Options include easy access accounts for flexibility and fixed rate products for potentially higher interest rates over a set term.
Interest is tax-free within the ISA allowance, and funds are covered by the FSCS protection limit per banking provider.
Unlike Stocks and Shares ISAs, Cash ISAs carry no investment risk but generally offer lower returns.
They may suit those prioritising capital preservation and predictable growth over market-linked gains.
Lifetime ISA Features
The Lifetime ISA (LISA) is available for individuals aged 18 to 39.
It allows contributions of up to £4,000 per tax year, which count towards the overall £20,000 ISA limit.
The government adds a 25% bonus to contributions, up to £1,000 per year.
Funds can be used to buy a first home worth up to £450,000 or withdrawn after age 60 for retirement purposes.
Hargreaves Lansdown offers a Stocks and Shares Lifetime ISA, enabling investment in funds, shares, and other eligible assets.
Withdrawals for other purposes incur a 25% penalty, which can reduce the original capital invested.
Popular Funds and Investment Ideas for 2025
Hargreaves Lansdown clients in August 2025 continue to focus on diversified, cost-efficient funds that align with long-term goals. Many investors are choosing a mix of actively managed funds, ready-made portfolios, and low-cost index options to make the most of their Stocks and Shares ISA allowance.
Wealth Shortlist and Top Picks
The Wealth Shortlist is Hargreaves Lansdown’s curated selection of funds chosen by its research team. Each fund is assessed for performance potential, management quality, and cost efficiency.
In 2025, the list includes a mix of multi-asset funds, UK equity picks, and global growth strategies. For example, some top-quartile performers this year have been in the multi-asset income category, offering balanced exposure to shares and bonds.
Investors often use the shortlist as a starting point for building a diversified ISA portfolio. The selection covers different regions, sectors, and risk levels, allowing users to match choices to their own objectives. Regular updates ensure underperforming funds are removed, keeping the list relevant.
Ready-Made Investments
Hargreaves Lansdown offers ready-made portfolios for those who prefer a hands-off approach. These portfolios are built and managed by professionals, with regular rebalancing to maintain the intended risk profile.
Options typically range from conservative to adventurous, with varying allocations to equities, bonds, and alternative assets. For example, a cautious portfolio might hold more government bonds, while a higher-risk one could focus on global equities.
Ready-made investments can suit investors who want ISA exposure without selecting individual funds. They also provide an easy way to start investing immediately while benefiting from diversification.
| Risk Level | Equity Allocation | Bond Allocation | Example Use Case |
|---|---|---|---|
| Cautious | 20–40% | 60–80% | Shorter-term goals |
| Balanced | 50–70% | 30–50% | Medium-term growth |
| Adventurous | 80–100% | 0–20% | Long-term growth potential |
ISA Investment Ideas
In August 2025, ISA investment ideas often focus on global diversification and inflation resilience. This includes exposure to US technology, sustainable investments, and global bond funds.
Some investors are adding Vanguard LifeStrategy funds, which offer low-cost, all-in-one portfolios with fixed equity-to-bond ratios. Others are choosing targeted funds such as global sustainable equity strategies, which invest in companies with strong environmental and social credentials.
Bond funds remain relevant for those seeking stability. Flexible bond strategies that adapt to changing interest rates can help manage volatility in uncertain markets.
Investment Trusts and ETFs
Investment trusts and exchange-traded funds (ETFs) are popular among ISA investors seeking transparency and lower costs. Both allow investors to access a wide range of markets, from UK mid-caps to global emerging markets.
Investment trusts can trade at a discount or premium to their net asset value, which can create opportunities for value-focused investors. Some trusts also use gearing to enhance returns, although this increases risk.
ETFs, such as those tracking the FTSE All-World Index or specific sectors, are valued for their low ongoing charges and intraday trading flexibility. Vanguard’s broad-market ETFs remain a common choice for building a low-cost, diversified ISA core.
Fees and Charges in 2025
Hargreaves Lansdown applies a transparent fee structure for its Stocks and Shares ISA, with platform charges based on the type of investments held. Costs vary depending on whether the investor holds funds, shares, or a mix of both, and recent reductions have made the service more competitive for certain account sizes.
Account and Dealing Fees
The standard platform fee for funds is 0.35% per year on the first £250,000, reducing for higher amounts. For shares, ETFs, and investment trusts, there is no percentage-based platform charge; instead, a flat custody fee of £45 per year applies.
Dealing fees for shares and ETFs are £11.95 per trade, with lower rates for frequent traders. Fund dealing is free when buying or selling. There are no set-up or inactivity fees.
For larger accounts, tiered discounts apply. For example, fund holdings between £250,000 and £1 million are charged at 0.25%, and holdings above £1 million attract no fund platform fee.
Cost Comparisons with Alternatives
When compared with interactive investor (ii), the difference lies in the charging model. ii applies a flat monthly subscription starting from £4.99 to £19.99, depending on the plan, which can be more cost-effective for large portfolios.
Hargreaves Lansdown’s percentage-based fee benefits smaller investors in funds but can be more expensive for very large holdings. For those holding mainly shares and ETFs, the £45 annual custody fee can be lower than ii’s subscription cost.
Example for a £50,000 portfolio in funds:
| Provider | Annual Platform Fee | Dealing Costs (Funds) |
|---|---|---|
| Hargreaves Lansdown | £175 (0.35%) | £0 |
| interactive investor | £59.88 (Investor plan) | £0 |
Savings Examples
Recent promotions in 2025 offer reduced platform charges for new customers transferring or investing £10,000+ into a new ISA, with discounts lasting until 31 December 2025.
For a £100,000 fund portfolio, the standard HL fee would be £350 per year. Under the promotion, this could drop by up to 40%, saving £140 over the discount period.
Investors holding mainly shares could save further, as the flat £45 custody fee applies regardless of portfolio value. This structure can be advantageous for high-value equity portfolios compared to percentage-based fees.
How to Open and Manage a Hargreaves Lansdown ISA
Opening a Hargreaves Lansdown ISA involves choosing between a Stocks and Shares ISA or a Cash ISA, completing an application, and funding the account. Management is done online, by phone, or through the HL mobile app, with tools for monitoring investments and making changes.
Step-by-Step Application Process
Applicants can open an ISA online, by phone, or by post. The online process is the quickest, often taking less than 10 minutes.
They must provide personal details such as name, address, date of birth, and National Insurance number. HL will also ask for bank account details for funding.
The applicant chooses the ISA type. For a Stocks and Shares ISA, they can either select investments immediately or hold funds as cash until ready to invest.
Minimum funding requirements apply:
- Lump sum: £100
- Monthly contributions: £25 or more
Once the application is submitted and verified, HL will confirm the account is open and ready for use.
Funding and Transfers
Funding can be done via bank transfer, debit card, or regular monthly payments. HL allows contributions up to the annual ISA allowance (£20,000 for 2024/25).
Existing ISAs from other providers can be transferred in without losing tax-free status. Transfers can be:
- Cash transfer – funds moved as cash before reinvestment
- In-specie transfer – existing investments moved without selling them first
HL provides an online transfer form. Transfer times vary depending on the provider and whether assets are sold before transfer.
For regular investing, the monthly direct debit option helps spread investments across the year. One-off top-ups are also available at any time.
Using the HL Platform and App
The HL website and mobile app allow account holders to view their ISA balance, holdings, and transaction history in real time.
Investors can buy and sell shares, funds, ETFs, and investment trusts directly from the platform. Orders can be placed during market hours or set as limit orders.
The app includes portfolio analysis tools, price alerts, and market research. Users can also download statements, update personal details, and set up or amend regular investments.
Security features include two-factor authentication and secure messaging for account queries. The platform is accessible on desktop, iOS, and Android devices.
Expert Insights and Financial Advice
Hargreaves Lansdown offers investors a combination of professional investment guidance, research tools, and platform features that can help them make informed ISA decisions. Investors can also compare its services with other major ISA providers to assess value, costs, and investment choice.
Accessing Professional Guidance
Hargreaves Lansdown provides in-house research covering shares, funds, investment trusts, and ETFs. This includes analyst reports, market updates, and fund shortlists.
Investors can choose to manage their own portfolios or use ready-made portfolios designed by the firm’s investment team. These portfolios are built to match different risk profiles and investment goals.
Telephone and online support give access to qualified financial advisers. This service is fee-based and can cover topics such as retirement planning, tax efficiency, and portfolio diversification.
For those seeking ongoing advice, Hargreaves Lansdown offers advice packages that include regular reviews and rebalancing. This can be useful for investors who prefer a hands-off approach but still want tailored recommendations.
Tools for Optimising Your ISA
The platform includes a range of online calculators for tax planning, retirement forecasting, and investment growth projections. These tools help investors understand the impact of contributions, withdrawals, and market performance.
An ISA allowance tracker shows how much of the annual £20,000 limit has been used. This helps prevent exceeding the limit and ensures efficient use of tax benefits.
Hargreaves Lansdown also provides a portfolio analysis tool that breaks down asset allocation, sector exposure, and geographic spread. This can highlight over-concentration and suggest areas for diversification.
Investors can set up regular investing plans from as little as £25 per month, enabling cost averaging and disciplined investing without manual trades.
Comparing with Other Providers
Compared to Vanguard, Hargreaves Lansdown offers a much wider investment choice, including over 4,000 funds, shares, and bonds, whereas Vanguard’s ISA focuses mainly on its own low-cost funds and ETFs.
Against Interactive Investor, Hargreaves Lansdown charges percentage-based platform fees for most accounts, while Interactive Investor uses a flat monthly fee. The better option depends on portfolio size and trading frequency.
Hargreaves Lansdown’s research depth and customer support are stronger than many low-cost providers, but those prioritising minimal fees might find Vanguard or Interactive Investor more cost-efficient for larger portfolios.
