About ISAs
ISA is short for 'Individual Savings Account'. It allows you to get the income and returns from your savings and investments without having to pay any further income or capital gains taxes.
There are two types of ISA - Cash ISAs and Stocks & Shares ISAs. Investment products such as authorised unit trusts, can be held in the Stocks & Shares ISA.
- A Cash ISA is where you save in to a deposit account.
- Stocks & Shares ISAs allow you to invest in a wide range of investment products such as unit trusts and are suitable for individuals who are happy to invest for 5 years or more.
So how much can I inveset in an ISA?
The maximum Cash ISA investment allowance is £3,600*. Whereas, the maximum you can invest in a Stocks & Shares ISA is £7,200* per tax year (less any amount you save in a Cash ISA).
Cash ISAs are available to all UK residents aged 16 or over.
Stocks & Shares ISAs are available to all UK residents aged 18 or over.
You are only allowed to contribute to one Cash and/or one Stocks & Shares ISA per tax year.
* If you were born on or before 5th April 1960, increased ISA limits apply from 6th October 2009. You can invest up to £5,100 each tax year in a Cash ISA and your overall annual ISA investment allowance is £10,200. These higher limits will apply to all eligible ISA investors with effect from 6th April 2010.
