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Glossary · Savings

ISA (Individual Savings Account)

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Definition: A tax-free wrapper for cash, investments or a mix. Interest, dividends and capital gains inside an ISA are not taxed.

ISA types: Cash ISA, Stocks & Shares ISA, Lifetime ISA, Innovative Finance ISA, Junior ISA. The annual adult allowance is £20,000 across all your ISAs. From April 2024 you can pay into more than one ISA of the same type per year.

Primary source: gov.uk/individual-savings-accounts

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