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.