"ISAs remain one of the most popular ways to invest in the UK, as they let you grow savings and investments tax-free up to a yearly limit, currently £20,000. That means no tax on capital gains, dividends, or interest earned within the account. There are different types of ISAs, but for investors, the stocks and shares ISA is the most flexible. You can hold a wide range of assets inside it, such as shares, funds, bonds and cash."
"If you've used up your ISA allowance or want to invest with no limit on the amount you can invest, a general investment account (GIA) gives you complete flexibility. There's no annual cap on contributions or withdrawals. However, income and gains made through a GIA may be taxable once they exceed your tax free allowances (the capital gains tax-free allowance is currently £3,000 for the tax year 2025/2026) and the personal savings allowance is currently up to £1,000."
Account choice affects investment growth, taxation, and accessibility. Individual Savings Accounts (ISAs) allow tax-free growth up to a £20,000 annual limit, with no tax on capital gains, dividends, or interest within the account. Stocks and shares ISAs can hold shares, funds, bonds, and cash. Flexible stocks and shares ISAs permit withdrawals and replacements within the same tax year without losing allowance, supporting short-term access alongside long-term investing. General Investment Accounts (GIAs) impose no contribution limit or withdrawal cap, but income and gains can become taxable once they exceed allowances: capital gains allowance £3,000 (2025/26) and personal savings allowance up to £1,000.
Read at Business Matters
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