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There’s plenty of choice when it comes to investment companies offering stocks and shares ISAs. Check out the fees and terms – such as the required minimum investment – before making your decision
Make your money work harder with an investment ISA
Enjoy tax free returns
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A stocks and shares ISA is a tax-free way of investing up to £20,000 each tax year in the stock market through funds, bonds or shares.
It’s different to a cash ISA, which is also tax free but pays interest on your savings.
You can only open one stocks and shares ISA each tax year in the UK.
Setting up and handling a stocks and shares ISA is straightforward. Just follow the steps below
There’s plenty of choice when it comes to investment companies offering stocks and shares ISAs. Check out the fees and terms – such as the required minimum investment – before making your decision
You can open an account online to act as a tax-free ‘wrapper’ for your investments. Depending on the account, you may also be able to transfer in existing ISAs from elsewhere without eating into your allowance
You can invest up to £20,000 each tax year. This counts towards your overall ISA allowance. You have a wide choice of where to invest, and can make your own decisions or look for help from an expert adviser
You’ll be able to track how your investments are performing over time and make any changes you see fit. You can also give instructions to sell your shares and withdraw the money when you need it.
Need some help to decide? We’ll help you weigh up the advantages and disadvantages of investing in a stocks and shares ISA...
Your stocks and shares ISA is exempt from income tax and capital gains tax
It has the potential to grow faster than a cash ISA over time
You’ll can manage your own portfolio or have it managed on your behalf
Invest in companies or areas you believe will grow or align with your social and ethical values
Investing is not without risk and your ISA could go down as well as up in value
Management fees can be high and eat into your profits
You’re capped at £20,000 to invest tax-free each tax year
May not to be suitable for short term investors because of market volatility
View ISAs at a glance with details such as minimum investment and any fees
See options from our panel of leading providers, so you can easily compare
When you’ve made your decision simply click through to open your account online
There are different types of stocks and shares ISA to suit different needs.
Manage your portfolio by choosing specifically which stocks or funds to buy and sell. Can be good for experienced investors. Take into account fund charges, trading charges and exit fees.
The ISA provider manages your investment at a risk level that you choose. There are various service levels from investment advisers to robo-advisers.
You’ll usually pay more for this service.
A stocks and shares ISA is a tax-free wrapper that can be put around a wide range of different investment products or assets, such as:
Where you purchase a small slice of a single company and look to make a return as the company’s value rises
A form of collective investment. The pooled money is invested in a portfolio of assets. An investment trust has a fixed number of shares
An investment fund traded on stock exchanges. ETFs tend to track particular markets or indices and can often be low cost investments
You lend money to the government or a corporation when you invest in a bond with the promise that it will be repaid with interest when the bond matures
When selecting the right investment ISA for your needs there are a range of things to consider, including:
Different investment ISAs can offer different levels of risk – or the option for you to choose your own underlying assets. Make sure you’re comfortable with where your money is being invested and you fully understand the risks.
Decide how hands-on or off you want to be with your stocks and shares ISA. Using a professional adviser or investment platform will come with additional fees, but you might benefit from their investment expertise
Check what you’ll be paying in upfront fees, plus any ongoing management charges. If you’re looking to transfer an existing stocks and shares ISA into your new account, consider the transfer fees. There might also be a time lag involved.
Find out how the provider will interact with you and how and when they’ll be available should you need to contact them. See what others think of the providers by checking out online reviews of their services
Stocks and shares ISAs are governed by a number of tax rules. These include:
Maximum annual investment – save up to £20,000 tax-free in ISAs each tax year. This money can be invested entirely in stocks and shares ISAs or cash ISAs, or split between the two
Deadline for investing – the end of the tax year is 5th April. You must use your annual ISA allowance by then or lose it
More flexible investing – you can now open as many stocks and shares ISAs, cash ISAs and innovative finance ISAs as you like during the tax year (subject to £20,000 annual subscription limit)
Frequency of investing – make a lump sum deposit, regular or occasional contributions throughout the tax year
Reinvesting – if you cash in some or all of your ISA, you can reinvest this money into another ISA, but only to the extent that you have unused available ISA allowances
Stocks and shares ISAs provide a great opportunity. Not only will you benefit from tax-free returns, but the stock market typically outperforms savings accounts, so you can see your money growing faster. There are risks though. As with all investments, the value of what you have can go down as well as up. So you may get back less than you put in,
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Just click the button below to see a list of all our stocks and shares ISA accounts
View accounts from leading UK stocks and shares ISA providers and compare fees and minimum investment
When you find the stocks and shares ISA you want, click straight to the provider to apply
No, the ISA allowance is capped at £20,000 for the current tax year. If you don’t use it by April 5, it expires and is lost. You’ll have a new £20,000 ISA allowance for the next tax year.
The length of time you invest is a matter of personal choice and comes down to individual circumstances and preference. Typically, investing for the long term and diversifying your investments gives you more chance to make better returns and ride out any downturns in the stock market.
This depends on many factors, such as how much research you want to do or knowing specific sectors you may want to invest in. Experienced investors may choose to pick stocks themselves. Alternatively, you could opt to have your ISA managed by a fund manager. You’re likely to be charged slightly more for this, but you have a dedicated expert trying to optimise your returns.
Other types of ISAs available include:
Cash ISAs
Innovative Finance ISAs
Lifetime ISAs
Junior ISAs
