Individual Savings Accounts (ISAs)
ISAs provide a tax-free umbrella (no liability to income or capital gains tax) for your securities and equity-based investments e.g. shares, bonds & gilts etc.
This provides the holder with tax-free income, tax-free growth and in some instances both.
It is most appropriate where the account holder pays high rates of tax or if they wish to supplement their pension planning in the future.
From April 2008 up to £7,200 can be invested into a stocks and shares ISA.
Alternatively, £3,600 can be invested into a stocks and shares ISA and a further £3,600 that can be invested into a cash ISA.
You can invest into ISAs on a regular basis as well as via lump sums.