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A GUIDE TO SAVING AND INVESTING IN INDIVIDUAL SAVINGS ACCOUNTS (ISAs)

ISAs are savings schemes which were introduced in 1999 to encourage people to save by offering tax incentives. This factsheet answers the typical questions asked about ISAs.

If you would like more general information about saving and investing, the IMA publishes a free guide “Introducing Investment” which is available from the menu on the left.

WHAT IS AN ISA?

*ISAs* allow people to save their money in a range of investments such as *cash*, *stocks and shares* and life insurance products. Unlike investing directly in these products, investing through an ISA provides certain benefits. An ISA is often referred to as a “*tax wrapper*” which goes around your savings, protecting them from paying certain taxes.

AM I ELIGIBLE?

  • If you are aged 16 or over (although until your 18th birthday you can only invest in the cash component of an ISA); and

  • If you reside in the United Kingdom for tax purposes (or are a Crown employee currently working overseas and treated as resident, or are married to a person who performs such duties);

you may invest in an ISA. You cannot hold an ISA jointly with anyone else, or hold one on behalf of another person.

If at any time you are unsure about your investment objectives or attitude to *risk*, you should contact a *financial adviser*. Details of how to contact a financial adviser can be found here.

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