A Stocks & Shares ISA lets you invest your money in the stock market — and pay no tax on your profits. It’s one of the most powerful ways to grow your wealth over the long term, all within your annual ISA allowance.

If you're unsure how ISAs work generally, check out our beginner’s guide to ISAs first.

What Can You Invest In?

Through a Stocks & Shares ISA, you can invest in:

• Individual UK or global shares
• Investment funds and ETFs
• Corporate and government bonds
• Investment trusts
• Cash (some platforms allow temporary holdings)

What Are the Benefits?

• No Capital Gains Tax on any profits you make
• No Income Tax on dividends or interest
• Flexible investments — choose what suits your goals and risk level

How Much Can You Invest?

For the 2025/26 tax year, you can invest up to £20,000 across all your ISAs. If you invest the full amount into a Stocks & Shares ISA, you can’t pay into another Stocks & Shares ISA that year — but you can still use a Cash ISA or a Lifetime ISA as long as you stay within the overall £20,000 limit.

What Are the Risks?

Unlike Cash ISAs, your money isn’t protected from market movements. You might get back less than you put in, especially over the short term.

• Markets can go up and down
• Not protected by the FSCS if you choose poor or unregulated investments
• Fees vary between platforms — always compare!

Who Is a Stocks & Shares ISA Suitable For?

This ISA type is ideal if you:

• Want to invest for the medium to long term (5+ years)
• Are comfortable with some risk in exchange for potential growth
• Want to invest tax-efficiently without worrying about allowances

How to Get Started

You’ll need to open an ISA account with an investment platform (like Vanguard, Hargreaves Lansdown, Trading 212, etc.). Then you can choose ready-made portfolios or build your own.

Explore Other ISA Options

Not sure a Stocks & Shares ISA is right for you? Learn about the alternatives:

• Cash ISA – Keep your savings safe with tax-free interest.
• Lifetime ISA – Save for your first home or retirement and get a 25% bonus.
• Innovative Finance ISA – Invest in peer-to-peer loans (higher risk).
• Junior ISA – Save for your child’s future tax-free.