A stocks-and-shares ISA is a popular and tax-efficient way to save. With a stocks-and-shares ISA, you choose how your money is invested.
While it’s not an investment in its own right, it does give you the freedom to invest in a number of different investment types.
The purpose of putting your money into an ISA is to take advantage of its tax breaks. For example, any gains you make are exempt from Capital Gains Tax and you don’t need to pay any income tax on any returns you receive from your stocks-and-shares ISA. One easy way to think of an ISA is as a ‘wrapper’ – one that shelters your savings and investments from tax.