What are my ISA options?

There are different types of ISA investments available to investors. What you choose is likely to depend on a number of factors such as investment time horizon or attitude to risk.

Stock & Shares ISA Investments

What is it?

It’s a tax-efficient investment account that lets you put your money into cash and/or different types of investments. Because these investments sit within your tax-efficient Stocks & Shares ISA wrapper, you do not have to pay capital gains tax on profits arising from your stocks and shares investments. In addition, there is no tax on dividend income from shares or interest paid on bonds.

A Stocks & Shares ISA can invest in a range of different type of investments including, unit trusts, Open Ended Investment Companies (OEICs), investment trusts and corporate/government bond funds. The range of investments will vary depending on the Stocks & Shares ISA provider.

As with all stock market exposure, there is a danger that the value of your Stocks & Shares ISA investments can go down as well as up. At least within a Stocks & Shares ISAs, whatever returns you do make are not liable to a tax charge. Please note tax rules can change at any time.

Who can invest?

You can invest in a Stocks & Shares ISA account if you are a UK resident and are aged 18 years or over.

How much can you invest?

You can save up to a maximum set by the government each tax year into a Stocks & Shares ISA account. You do not have to invest the maximum amount and you can save into other Stocks & Shares ISAs simultaneously so long as the combined total investment is within the £20,000 annual tax-free allowance for 2020/21. However, you cannot take out two or more Stocks & Shares ISAs of the same type, in the same tax year.

It is important to remember that Stocks & Shares ISAs are distinct for every tax year – from 6 April to 5 April the following year. There is no roll over of unused Stocks & Shares ISAs allowance, so if you miss the end of tax-year deadline, that’s it.