An ISA (Individual Savings Account) is a tax-free savings or investment wrapper available to UK residents.
ISA allowance
You can put up to £20,000 per tax year into ISAs. All interest, dividends and growth within an ISA are free from Income Tax and Capital Gains Tax.
Types of ISA
- Cash ISA: like a savings account, but interest is tax-free
- Stocks and Shares ISA: invest in shares, funds or bonds tax-efficiently
- Lifetime ISA (LISA): for first-time buyers or retirement (25% government bonus)
- Junior ISA: for children under 18 (£9,000 annual allowance)
This is general information, not financial advice. For help choosing an ISA, consider speaking to a financial adviser.