Interactive Investor

What is a Stocks and Shares ISA?

Invest up to £20,000 per year without paying tax on your gains.

Make your money go further

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.

What is a Stocks & Shares ISA?

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.

Before you invest, check out our New Customer hub to find out how the ii account works and how to make the most of it. 

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 2022-23.

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?

In an ii Stocks and Shares ISA, you can choose from a wide range of shares, funds, investment trusts, ETFs and more.

Our experts make this easy with a range of hand-picked investment ideas to help you get started - including Quick-start Funds and our ii Super 60 and ii ACE 40 rated lists. 

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 £12,300 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.

How much does it cost to invest in a Stocks and Shares ISA?

Most providers charge a percentage fee that grows with your investments, we are different. Our Stocks and Shares ISA costs a flat £9.99 a month. You can also add our Trading Account and Junior ISA at no extra cost.

  • You can contribute as little as £25 a month with our regular investing service. There are no trading fees when you contribute this way.
  • If you want to buy or sell shares and funds, your first monthly trade is free. After that, trades usually cost £7.99.
  • There are some additional fees for things like foreign currency exchange. View our ISA charges page for a full list.

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.

Stocks and Shares ISA rules

ISA transfers

Investing in Stocks and Shares ISAs

Invest for a better future with our low-cost, award-winning Stocks and Shares ISA. Start today for only £9.99 a month.

Learn more about our Stocks and Shares ISA

Learn how to make the most of your Stocks and Shares ISA with our useful guides.

Investment ideas

Need inspiration? Our experts are here to help you get started.

Open an ISA

Invest and keep more of your money with our low-cost, award-winning ISA.

ISA allowance

Take advantage of this year's ISA allowance.