chapter 3

The ISA – individual savings account

Individual savings accounts (ISAs) offer you the ability to invest in the stock market or to keep your money in cash, in a tax-efficient way. All investment income is tax-free and there is no tax to pay on capital gains.

The tax efficiency and easy access to your money offered by ISAs means they can be used for both short- and medium-term saving and can also sensibly form part of a DIY investor’s retirement strategy.

If, like me, you dread filling in your tax return, then one of the advantages of an ISA is that the taxman isn’t interested in it and details do not need to be supplied as part of your self-assessment.

The history of ISAs

Launched by Gordon Brown in 1999, ISAs have become one of ...

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