What is an ISA?
Definition of ISA
An ISA is an Individual Savings Account. The money that sits in that ISA will earn interest and dividends free of tax.
If you're a UK resident, you can invest money in an ISA each year, up to a certain limit (this changes every year).
Interest and dividends paid on money that's in an ISA aren't reported on your UK tax return, because they are tax-free.
You can also invest money in an ISA on behalf of a child.
Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.
