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Mar 2020

Is a Stocks and Shares ISA Taxable?

Is a Stocks and Shares ISA Taxable?

You might be a first-time investor wanting to put some money away to invest, and wondering – if I open an investment ISA, will I be taxed on the returns? We’ve answered your question – and more. 

The short answer?


The biggest benefit of the ISA account is that interest gained on the returns is safe from the taxman – these are held in a tax-free wrapper where you are not taxed on your returns.

What's a Stocks and Shares ISA? 

“Stocks” and “shares” are interchangeable terms, though they have different meanings:

  • “shares” can refer to owning part of one particular company
  • “stocks” can refer to shares in a number of different companies

An ISA is a specific way to save which gives you tax-free returns on your savings (or in this case, investments). A Stocks and Shares ISA, or an Investment ISA, is a form of ISA. 

What does it mean to say these are 'tax-free'? 

The biggest feature of a stocks and shares ISA, rather than just investing in stocks and shares, is that the returns you receive from this investment are tax-free. Because of Government legislation, you are able to put a certain amount of money into an ISA and receive returns tax-free. 

Every UK citizen over the age of 18 is able to open an Stocks and Shares ISA, and the upper limit for what they are able to save without taxation on returns is £20,000

We've written a blog which outlines how these accounts work and what to consider when opening one, if you are looking to take advantage of your tax-free allowance. 

Where can I get one? 

Stocks and Shares ISAs are available on multiple platforms which offer a multitude of different funds which you can invest in. 

 You can get an Investment ISA from: 

  • Online fund supermarkets 
  • Robo-advisers
  • Banks
  • Stockbrokers
  • Wealth managers

Read more about Investment ISAs. 

Selected ISAs

Investment ISA

from Barclays Smart Investor

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: 2,000+ funds
  • Invest From: £10 per month
  • Investment Options: Choose from thousands of investments including funds, equities and bonds. Use the tools and insights in Barclays Research Centre to make your own investment decisions.

Why we like it: Why we like it: Invest in over 2,000 funds plus Exchange Traded Funds (ETFs), investment trusts, shares and more. UK-based customer support team available by phone and online. You have until 5th April to use your £20,000 ISA allowance. 

Important: The value of your investments can rise as well as fall. You may get back less than you invested. Tax rules can change and individual effects vary. If you’re unsure, we recommend you ask for independent advice.

Investment Fund Supermarket ISAs

Vantage Stocks & Shares ISA

from Hargreaves Lansdown

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,500+ Funds
  • Invest From: £25 pm

Why we like it: Shelter up to £20,000 this tax year with the low cost, award-winning ISA. The UK's number 1 platform for private investors. 

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

New (tax) Year, New You: How to Make the Most of Your ISAs in 2020/2021

6th April 2020

Dawn breaks on the morning of April 6th 2020 – the sun is (potentially shining) and the new tax year has begun. With £20,000 of possibilities for your tax allowance for this new tax year – we’ve answered the most common questions that savers have at this stage. 

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