ISA Investments

ISAs (or Individual Savings Accounts) enable you to shelter your investments from income tax and capital gains tax.

An ISA is a tax-efficient way of investing money without you having to pay further tax on any of the profit made, withdrawals or income you take. The account itself is like a basket in which you can put different types of investment.

Anyone over the age of 18 who is resident and ordinarily resident in the UK for tax purposes can invest in an ISA.

What types of ISA are there?

There are two types of ISA:

- stocks and shares

- cash

How much can I invest in an ISA for tax year 2010/11?

You can make lump sum or regular investments provided that you do not exceed the maximum allowable amount.

The overall subscription limit for an ISA is £10,200, of which you can invest up to £5,100 into a cash ISA, and the balance or full amount in a stocks and shares ISA.

You cannot subscribe to more than one cash ISA or stocks and shares ISA in the same tax year.