An Individual Savings Account (ISA) is a tax-advantaged means by which investors may save and invest upto £7,200 each year without incurring income or capital gains taxes on the proceeds. There is no tax relief on money put into ISAs on entry, unlike contributions to a pension scheme. Instead, you are not liable to pay income or capital gains tax on the proceeds of an ISA and the investments you hold within an ISA grow largely free of income and capital gains tax.
There are two types of ISA: Cash ISAs and Stocks and Shares ISAs.

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