ISAs Explained
ISAs Explained
ISAs Explained: What is an ISA?
Individual Savings Accounts or ISAs were launched by the Government in 1999 and allow you to save and invest tax free. With ISAs, you can start with small amounts and save up to £7,200 each tax year (a tax year runs from 6 April to 5 April in the following year), putting money in and taking it out whenever you like.
ISAs Explained: What are the different types of ISA?
There are two types of ISA, Stocks and Shares and Cash.
- Stocks and Shares ISAs: You can save up to £7,200 per tax year.
- Cash ISAs: You can invest up to £3,600 per tax year.
You may pay into both a Stocks and Shares ISA and a Cash ISA during the same tax year provided you do not exceed the £7,200 limit on the accounts combined and do not exceed the £3,600 limit on cash deposits. On April 6 2008, Cash ISAs and Stocks and Shares ISAs replaced the Mini and Maxi ISAs - to find out what changed, read our Guide to ISA Changes.
ISAs Explained: What are the benefits of ISAs?
- No tax on income from your ISA
- No tax on capital gains arising on your ISA
- No tax when the policy pays out
ISAs Explained: Who can have an ISA?
To open an ISA you have to be aged 18, or 16 for a Cash ISA. You must be a resident in the UK. You cannot hold an ISA jointly with, or on behalf of, anyone else.
ISAs Explained: Where can I get an ISA?
For some of the latest ISA deals, see the table below.
Alternatively click on isa advertising links below:
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Please bear in mind that:
Investment ISAs are designed as medium to long term investments, for example at least five years.
The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
If you choose an index-tracking trust which invests overseas, exchange rate variations may cause the value of your investment to increase or decrease.
If you unsure what Investment ISA plan is right for you speak to an independent investment adviser.