An ISA (Individual Savings Account) is a tax-efficient type of account for UK residents, that allows you to invest or save with the total amount in the current tax year of £20,000. It is a great and flexible way to help you make more of your money.
You do not pay tax on income or capital gains, nor do you need to declare any profits made in an ISA.*
You can choose to save in a variety of ISAs, as long as you don’t exceed the annual £20,000 ISA allowance.
The four main types of ISAs are:
- Stocks and Shares
- Cash
- Innovative Finance
- Lifetime
*An annual tax statement for an ISA cannot be issued due to the tax-free specific of this type of account.