Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.
A Stocks and Shares ISA: a tax-efficient investment account
Our Stocks and Shares ISA lets you invest in a wide range of funds, shares and more.
You can invest up to £20,000 each year, and your investments are sheltered from capital gains tax and income tax. That means when you come to withdraw the cash, the money is all yours.
Remember that there is always a risk that your investments can go down as well as up. You should not invest money that you can’t afford to lose.
How does a Stocks and Shares ISA work?
A Stocks and Shares ISA is a tax-efficient investment account which can offer greater returns than cash savings. All you need to open an account is to be aged 18 or over, and be a UK resident.
The account allows you to either keep cash or place your money in investments, the returns of which are free from UK tax.
How much can I invest in an ISA?
You can invest up to £20,000 in your Stocks and Shares ISA each tax year. This is the ISA allowance for 2023-24.
But remember, the ISA allowance applies to all ISA accounts you may hold. For example, if you have a Stocks and Shares ISA and a Cash ISA, the £20,000 allowance is the total you can invest across both accounts.
What can I invest in?
What are the Stocks and Shares ISA tax benefits?
There are several tax benefits when you invest in a Stocks and Shares ISA:
- No tax on profits or capital gains
- No tax on interest earned on bonds
- No tax on UK dividends
In contrast, investments in a general investment account are eligible for tax on gains over £6,000 per year. This means the ISA allowance is a valuable benefit for investors.
You do not have to declare your Stocks and Shares ISA on your tax return.
Please note that you still have to pay tax on certain transactions. For example, Stamp Duty when you buy UK shares. Other government charges may apply when you buy international shares and receive international dividends. Please see our charges page for more details.
Stocks & Shares ISA fees and charges
When you open a Stocks and Shares ISA you will start on our £4.99 a month Investor Essentials plan. Should your investments grow above £50,000, you will move onto our £11.99 a month Investor plan.
- Investor Essentials plan: £4.99 a month. Our low-cost plan for those investing up to £50,000. UK and US trades are £3.99.
- Investor plan: £11.99 a month. Our most popular plan. It includes your first trade free every month and you can add as many Junior ISAs as you need for your children. You can also add 2 friends or family members for free. UK and US trades are just £3.99.
- Super Investor plan: £19.99 a month. For super-charged investors. Your first 2 trades are free every month and you can add as many Junior ISAs as you need for your children. You can also add up to 5 friends or family members for free. UK and US trades are just £3.99.
All our plans allow you to invest as little as £25 a month using our free regular investing service.
Other fees such as stamp duty and foreign exchange charges may apply.
On Investor Essentials, you must be set up to pay your fees by direct debit, and receive your communications electronically. Full terms for our Investor Essentials plan can be found here.
Read more: Our charges
Your money is safe with us
As one of the UK's largest investment platforms, we take the security of our 400,000+ customers very seriously. To ensure its safety, any money you hold with ii is placed in a bank account which is established with statutory trust status. This means your money is kept separate from our own.
You are also protected by the Financial Services Compensation Scheme (FSCS) which protects your money up to £85,000.
Remember that investing in a stocks and shares ISA means taking some risk and you could get back less than you invest.