What are ISAs
- ISA is short for ‘Individual Savings Account'.
- ISAs allow you to get the income and returns from you savings and investments without having to pay any income or capital gains taxes.
- There are two types of ISA - cash ISAs and stocks and shares ISAs. Investment products such as authorised unit trusts, can be held in the stocks and shares ISA.
- Cash ISA is where you save in a secure deposit account.
- Stocks and shares ISA is where you invest on the stock market in unit trusts.
- The maximum cash ISA investment allowance is £3,600^.
- The maximum you can invest in a stocks & shares is £7200^ 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 and shares ISA s are available to all UK residents aged 18 or over.
- You are only allowed to contribute to one cash and/or one stocks and 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.


