An ISA is a ‘tax-efficient wrapper.’ Types of ISA include a Cash ISA and Stocks & Shares ISA. A Cash ISA is similar to a normal deposit account, except that you pay no tax on the interest you earn. Stock & Shares ISAs allow you to invest in equities, bonds or commercial property without paying personal tax on your proceeds.

You get one Individual Savings Account (ISA) allowance per tax year, which resets on 5th April. Any unused allowance from the initial £20,000 limit will not be rolled over into the new year, meaning it’ll be lost for good – use it or lose it.

This Guide to Individual Savings Accounts will explain more about what an ISA is, how it works and how to get started, as well as the benefits and drawbacks too.

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