20 Feb 2015, 9:40pm

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  • ISA

    Individual Savings Account

    UK tax-sheltered investment wrapper. You pay tax on the money when you earn it, but once you’ve stuck it into an ISA you are sheltered from income tax and capital gains tax. These can hold stocks and shares or cash or a mix of both.

    Monevator on why you need to get an ISA because your future self with otherwise hate you when it comes to doing your tax return

    MSE with a longer description of ISAs and how they work

    ISAs are not the only way of sheltering from the taxman – pensions are another way, and it may be wise to use both. See SIPP

    Monevator on pensions versus ISAs

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