Hello, I am Clare, Savings and Investments Director
at Smart Investor, and I am going to explain
what an investment ISA is.
Please be aware though that we can not offer personal advice
so if you do not feel confident about making
an investment decision on your own,
do seek independent financial advice.
An investment ISA, also known as a stocks and shares ISA,
is a tax-efficient wrapper in which you can buy,
hold, and sell investments.
When you invest in an ISA, all capital gains
and income made from your investments
are tax-free within the UK.
But this may not be the case if you invest
outside of an ISA.
You need to stick to the rules though,
as there are limits on how much
you can pay into an ISA each tax year.
If you fill in a UK self-assessment tax return,
you do not need to include ISAs on this.
We have got loads more information
about ISAs and investing on our website,
so take a look and find out more.