What is an ISA?

An Individual Savings Account (ISA) is a tax-efficient 'wrapper' that provides a home for a number of different types of investment. The ISA wrapper ensures investors pay no tax on income or capital gains generated by the investments it contains. Your total ISA allowance for the 2023/24 tax year is £20,000 and this can be invested in cash, stocks and shares, or any combination of the two. You can invest a single lump sum or a series of smaller amounts via regular monthly savings. ‘Junior ISAs’ – with a current annual allowance of £9,000 – are also available for children under 18.