What is an investment ISA?

An investment ISA is also known as a stocks and shares ISA. In this short video, Clare explains what it is and what the main benefits are.

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Who's this for? All investors

The value of investments can fall as well as rise and you could get back less than you invest. If you’re not sure about investing, seek independent advice. Tax rules can change and their effects on you will depend on your individual circumstances.

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.

In these four short videos Clare tells us what an investment ISA is, how much you can save, what you can invest in, and how ISA flexibility works.

They’re all bite sized videos, each roughly one-minute-long to give you a quick overview of ISAs. If you’re looking for some more detailed information, we’ve got lots of articles to help. Here are a few you might be interested in:

What is an investment ISA?

ISA rules explained

Key tax rates, limits and allowances

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The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and their effects on you will depend on your individual circumstances.

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Wake up your money

Wake up your money by investing with Barclays. Choose your own investments with Smart Investor using our award-winning Investment ISA ('Best Stocks & Shares ISA Provider', Shares Awards 2021), or let us make the decisions for you with Plan & Invest. Either way, invest up to £20,000 per year and any returns you make are tax-free1.

Start investing to make the most of your money by making sure you've used your 2022-23 ISA allowance in an Investment ISA before you lose it. The sooner you begin, the sooner you could grow your money, tax efficiently.

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