Facts about funds
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About ISAs
| An ISA (Individual Savings Account) is a tax wrapper. You can invest up to £10,680 a year in an ISA. Money invested in an ISA is not subject to either income tax or capital gains tax, whereas money invested outside an ISA can give rise to both. |
Read our guide 'Saving and investing in ISAs' for more information.
ISA limits
The annual ISA allowance is £10,680 (for the tax year 2011-12). The ISA limit will be increased each year in line with the Retail Prices Index (RPI).
You can invest the full £10,680 in a stocks and shares ISA, or split the allowance by investing up to £5,340 in a stocks and shares ISA and £5,340 in a cash ISA. You cannot save in more than one cash ISA or more than one stocks and shares ISA in the same tax year.
If you have a cash ISA, the amount you invest in your stocks and shares ISA will be restricted to £5,340 a year.
Stocks and shares ISA
You can invest directly in stocks and shares (equities), or hold bonds or funds, within an ISA.
You can search for funds that can be held in an ISA using IMA's Fund Search.
You can buy a stocks and shares ISA from a financial adviser, fund platform, a fund manager or via a bank or building society.