What is an ISA?
- An ISA (Individual Savings Account)is a tax-free way to save or invest.
- The interest on a cash ISA is free from tax, which means you keep any interest you earn.
- Each tax year starts on 6 April and you get a new ISA allowance. For the tax year 2018/19, the ISA allowance is £20,000 for cash, Stocks & Shares and Innovative Finance ISAs
- Cash ISAs have similar features to savings accounts, but the interest you earn is tax-free. You’re allowed to save up to your annual ISA allowance.
- You can put your Stocks & Shares ISA allowance into a range of investments. Any gains you make are tax efficient.
- Money can be withdrawn from an ISA free of charge by BACS as long as there is a cash balance available. Shares can be sold to raise cash within a 3 day window.
- With new Flexible ISA rules now in place you can repay any withdrawals back to your ISA, providing both transactions are within the same tax year.