The UK government offers generous tax breaks to encourage saving. One of the most popular and accessible ways is through an Individual Savings Account (ISA). You can invest in a Stocks and Shares ISA, a Cash ISA or an Innovative Finance ISA (IFISA). It is also possible to combine ISAs with estate planning by investing in qualifying companies quoted on the Alternative Investment Market (AIM).
An ISA is not an investment in its own right – the best way to think of an ISA is a ‘wrapper’ in which you can shelter your savings and investments from tax.
The relief you receive depends on your individual circumstances and the tax rules may change in future. HM Revenue & Customs law and practice can change over time. If you are unsure about your tax status you should seek independent advice from a professional adviser.