Back حساب التوفير الفردي Arabic Individual Savings Account German Investeerimiskonto Estonian Osakesäästötili Finnish Piani individuali di risparmio Italian 個人貯蓄口座 Japanese 개인종합자산관리계좌 Korean ISA (cont) Romanian Individual savings account SIMPLE
An individual savings account (ISA; /ˈaɪsə/) is a class of retail investment arrangement available to residents of the United Kingdom. First introduced in 1999 as an Individual Special Savings Account (ISSA), the accounts have favourable tax status. Payments into the account are made from after-tax income, then the account is exempt from income tax and capital gains tax on the investment returns, and no tax is payable on money withdrawn from the scheme.
Cash and a broad range of investments can be held within the arrangement, and there is no restriction on when or how much money can be withdrawn.[1] Since 2017, there have been four types of account: cash ISA, stocks & shares ISA, innovative finance ISA (IFISA) and lifetime ISA (LISA). Each taxpayer has an annual investment limit (£20,000 since 2020–21[update]) which can be split among the four types as desired. Additionally, children under 18 may hold a junior ISA, with a different annual limit.
Until the lifetime ISA was introduced in 2017, ISAs were not a specific retirement investment, but any type can be a useful tool for retirement planning alongside pensions.[2]
- ^ "ISAs: Guidance Notes for ISA Managers" (PDF). HM Revenue and Customs. Retrieved 2 June 2014.
4.30... ISA investments ... must not be used as security for a loan
- ^ "Isas versus Pensions". Money Observer. Archived from the original on 14 July 2014. Retrieved 2 June 2014.
personal pensions are more tax-efficient than individual savings accounts (Isas), but Isas are more flexible. However, a good retirement strategy will include both types of tax wrapper