What is an ISA? ISAs Explained - The Share Centre

Please remember: Our website can help you make informed decisions, not provide personalised advice. If your investments fall in value, you could lose money.
Tax allowances and the benefits of tax-efficient accounts could change.

What is an ISA?

ISA is short for 'Individual Savings Account'. No matter what rate of tax you pay, when you invest your money in a Stocks and Shares ISA, it's very tax-efficient compared to a normal investment account:

  • No further tax to pay on income you receive from savings and investments 
  • No Capital Gains Tax
  • No need to tell your tax office (HMRC) that you have an ISA

ISAs are very popular with investors since they can save you tax. No matter whether you have existing investments or are looking to get started, a Stocks and Shares ISA could benefit you.

What's your ISA allowance? How much can you invest?

The Government sets an annual ISA allowance (ISA limit) on how much you can invest in an ISA each tax year. This year (6 April 2016 to 5 April 2017), your ISA allowance is £15,240 and the full amount can be invested in a Stocks & Shares ISA , a Cash ISA or an Innovative Finance ISA (or any combination of the three). Please note, The Share Centre does not offer Cash ISAs or Innovative Finance ISAs.

Unused ISA allowances don't roll over to the next tax year if you don't invest the full amount, so it’s a case of ‘use it or lose it’. However, your ISA itself doesn't end when the tax year does, so you can keep adding to it each year and get the benefits on the cumulative amount. Don't forget to invest your ISA allowance at the start of the tax year (6 April) to make the most of it. 

Who can open a Stocks and Shares ISA?

To open a Stocks and Shares ISA:

  • You must be aged 18 or over. 
  • You need to be a UK resident.
  • You must not have already opened a Stocks and Shares ISA in the same tax year.  

Withdrawing money

You can sell your investments and withdraw money from your Stocks and Shares ISA at any time. At The Share Centre the new Flexible ISA rules apply, so you can now repay those withdrawals back to your ISA, providing both transactions are within the same tax year.

Types of ISA

  • Stocks and Shares ISA: Make your money work harder by investing in the stock market. 
  • Stocks and Shares Junior ISA: Plan for your child's future by investing in the stock market. 
  • Cash ISA / Cash Junior ISA: Save money without having to pay Income Tax on interest. Please note that The Share Centre does not offer Cash ISAs or Junior Cash ISAs.
  • Innovative Finance ISA: Earn income by investing in Peer to Peer loans. Please note that The Share Centre does not offer an Innovative Finance ISA.

Open an ISA

Open an ISA

Don't let interest rates hold back your savings.

Flexible ISA

Flexible ISA

Enjoy flexibility to withdraw and replace money
in your ISA