If you prefer you can access our dedicated ISA site via the link below.
What is an ISA?
ISA stands for Individual Savings Account and were launched by the Government in April 1999 to encourage people to save and invest. The government allows you put up to £7,200 each tax year into a Stocks & Shares ISA and, once invested in an ISA, the tax man has no future claim to any capital growth or income that you receive. Each year you have a new ISA savings allowance. The tax year period runs from 6 April through to 5 April the following year.
From 6th April 2010, the ISA allowance will rise to £10,200 (with up to £5,100 in a Cash ISA). For the over-50s, the change applies from 6th October 2009, meaning that if you are over 50 you can invest an additional £3,000 in the current 2009/10 tax year.
If you prefer, you can invest up to £3,600 in a Cash ISA and then also invest in a Stocks & Shares ISA providing your total ISA investment for the tax year does not exceed £7,200.
Stocks and Shares ISAs allow you to invest in a variety of invested types, such as equities, bonds and foreign markets. Stock market investments can fall in value as well as rise, so you could get back less than you invest. However over the longer term funds and shares have the potential to produce significantly higher returns.