An ISA is a tax-free wrapper for your money. You can put up to £20,000 into ISAs each tax year. Any growth, interest, or dividends inside the ISA are completely free from UK income tax and capital gains tax.

Stocks & Shares ISA

Q: Can I have more than one ISA?

Yes. Since April 2024 you can pay into more than one ISA of the same type in the same tax year. The total across all ISAs cannot exceed £20,000 per tax year.

Q: What is a Lifetime ISA?

A Lifetime ISA is for adults aged 18 to 39. You can save up to £4,000 per year and the government adds a 25% bonus. The money can only be used to buy a first home or accessed from age 60. Withdrawing for any other reason triggers a 25% penalty.

An ISA is simply a tax-free wrapper for your money. Whatever you put inside it — savings, investments, funds — grows completely free from UK income tax and capital gains tax. You keep every penny of the growth. We connect you with specialist, FCA-regulated investment advisers who can help you choose the right ISA and get started. The introduction is free.

FCA Regulated| FCA No. 1038034| Free Investment Adviser Introductions| Est. August 2019| Verify on FCA Register

ISA in plain English — the numbers that matter

£20,000you can put into ISAs each tax year (2025/26) — per person, per year

0%tax on growth, dividends, and interest inside an ISA — ever

Any agefrom 18 you can open a Stocks & Shares ISA — the sooner you start, the longer it grows

Free introto a specialist FCA-regulated investment adviser — at no cost to you

📌 What changed in April 2024 — and what stayed the same From April 2024, you can now pay into more than one ISA of the same type in the same tax year — so you can spread your £20,000 allowance across multiple providers if you want to. The overall annual limit of £20,000 per person has not changed. The Lifetime ISA (LISA) bonus and rules also remain in place for first-time buyers and retirement saving.

Think of an ISA like a special box. Anything you put inside that box is protected from tax — for life. You can take money out whenever you want (with most ISAs), and you never have to declare it on a tax return. The government gives everyone in the UK an annual ISA allowance — use it or lose it, because it does not roll over to the next year.

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Protect What You Are Building

An ISA takes time to grow. If you cannot work due to illness or injury, you may be forced to draw on it early — or stop contributing. Income protection insurance keeps your financial plan on track if the unexpected happens.

Find out about income protection

The different types of ISA — which one is for you?

Stocks & Shares ISA

Your money is invested in funds, shares, or bonds. It can grow more than a cash ISA over the long term — but the value can go up and down. Best for money you will not need for at least five years.

Cash ISA

Works like a savings account but with no tax on the interest. Safe and stable, but returns are lower. Good for short-term savings or money you might need quickly.

Lifetime ISA (LISA)

For adults aged 18–39. Save up to £4,000 per year and the government adds a 25% bonus — up to £1,000 per year. Can only be used to buy your first home or accessed at 60. Withdrawing for any other reason triggers a penalty.

Innovative Finance ISA

Your money is lent to borrowers through peer-to-peer platforms. Higher potential returns but higher risk — not covered by the FSCS in the same way as cash savings. Specialist advice is strongly recommended.

Junior ISA (JISA)

A tax-free account for children under 18. Parents or guardians open it; the child gets access at 18. Up to £9,000 per year. Find out more about JISAs →

Not sure which?

Most families benefit from a mix — a Stocks & Shares ISA for long-term growth, a Cash ISA for the emergency fund, and a JISA for the kids. An adviser will help you decide.

Why a Stocks & Shares ISA beats a savings account for long-term money

No tax on growth — everOutside an ISA, you pay capital gains tax on investment profits above £3,000 per year (2025/26). Inside an ISA, there is no limit and no tax — ever.

No tax on dividendsOutside an ISA, dividends above £500 per year are taxed. Inside an ISA, all dividends are yours to keep or reinvest tax-free.

No tax return neededISA income and gains do not need to be declared on a self-assessment tax return. Less admin, less stress.

Beats inflation over timeCash savings often lose value in real terms once inflation is factored in. A well-invested Stocks & Shares ISA has historically outperformed cash over the long term.

Flexible accessMost Stocks & Shares ISAs allow you to withdraw your money whenever you need it — unlike a pension, which is locked away until at least age 57.

Compound growthReturns on your investments generate their own returns over time. The longer you leave it, the more powerful this effect becomes — which is why starting early matters.

How to get connected to an ISA adviser

Get in touch

Tell us you are interested in opening or reviewing an ISA and a little about your situation — how much you want to invest, your goals, and your timeline. No forms, no pressure.

We make the introduction

We introduce you to a specialist investment adviser we know and trust. The introduction is warm — they will know your situation before they call.

The adviser finds the right fit

They will assess your goals, attitude to risk, and tax position, then recommend the right type of ISA and the right funds or investments for your circumstances.

You decide — in your own time

There is no pressure to proceed. The adviser will explain everything clearly and let you make the right decision for your family.

Get Your Free ISA Adviser Introduction

ISA questions answered in plain English

What is an ISA and how does it work?

ISA stands for Individual Savings Account. It is a tax-free wrapper — think of it as a special box that protects whatever is inside it from tax. You can put up to £20,000 into ISAs each tax year (April to April). Any growth, interest, or dividends earned inside the ISA are completely free from UK income tax and capital gains tax — and you never need to declare them on a tax return.

Can I have more than one ISA?

Yes — and since April 2024, you can pay into more than one ISA of the same type in the same tax year. So you could split your £20,000 allowance across two different Stocks & Shares ISAs with different providers if you wanted to. The total you pay in across all ISAs cannot exceed £20,000 in a single tax year.

What happens if I do not use my ISA allowance?

You lose it. The £20,000 annual ISA allowance does not carry over to the next tax year — if you do not use it by 5 April, it is gone. This is one of the reasons starting early and contributing regularly makes such a big difference over time.

Can I take money out of my ISA?

With most Stocks & Shares ISAs, yes — you can withdraw your money at any time. Some ISAs are ‘flexible’, meaning you can put the money back in the same tax year without it counting against your annual allowance. The Lifetime ISA is different — withdrawing for anything other than a first home purchase or retirement triggers a 25% government penalty, which effectively takes back the bonus and more.

What is the difference between a Cash ISA and a Stocks & Shares ISA?

A Cash ISA works like a savings account — your money earns interest and is not at risk. A Stocks & Shares ISA invests your money in funds, shares, or bonds — the value can go up and down, but historically it has grown more than cash over the long term. For money you will not need for five years or more, a Stocks & Shares ISA is often the better choice. For short-term savings or an emergency fund, a Cash ISA is safer.

What is a Lifetime ISA and who is it for?

A Lifetime ISA (LISA) is for adults aged 18 to 39. You can save up to £4,000 per year and the government adds a 25% bonus — up to £1,000 per year. The money can only be used to buy your first home (on a property worth up to £450,000) or accessed from age 60. If you withdraw for any other reason, you pay a 25% penalty — which takes back the bonus and a small amount of your own money too. It is a powerful tool for first-time buyers, but the restrictions mean it is not right for everyone.

Is the introduction really free?

Yes — we make the introduction at no cost to you. The investment adviser may charge a fee for their advice; they will make their charging structure clear before providing any advice or recommendation.

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Written by Ben Tomlin — Financial Adviser, That’s Family Finance (a trading style of RB Ame Ltd).
Qualifications: Level 4 Diploma in Financial Advice · Level 3 Certificate in Mortgages & Protection · Level 3 Certificate in Equity Release.
FCA Individual Reference Number: BXT01420 · Last reviewed: August 2026.

Important information: That’s Family Finance is a trading style of RB Ame Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 1038034). Our FCA permissions cover protection insurance only. We do not provide investment advice. Where we introduce clients to investment advisers, those introductions are to separately FCA-authorised firms who provide advice in their own right. The value of investments can go down as well as up. You may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change. ISA and tax rules are based on current legislation for the 2025/26 tax year and may change in future. This page is for information only and does not constitute financial advice.