A stocks and shares ISA is a great way to invest in the stock market completely tax-free. Each taxpayer has an annual allowance allowing them to invest up to \u00a320,000 per tax year.<\/p>\n
A resident UK taxpayer has an \u00a320,000 annual tax-free allowance. The allowance is used to invest through a stocks and shares ISA. Think of an ISA as a wrapper or shopping basket in which you hold your assets. Remember, investments can go up and down in value and there is always the possibility that you may not get back all that you initially invest.<\/strong><\/em><\/p>\n There are plenty of providers offering thousands of shares and funds to choose from, as well as those with more restricted choice, but often with lower management charges. Best of all, you don\u2019t pay any income or capital gains tax whatsoever on your gains, or tax on the dividend income you earn from shares. There is no limit to the size of the gains that can be made tax-free.<\/p>\n There are many stocks and shares ISA providers out there, so finding the right account for you isn\u2019t always easy. That\u2019s where we come in.<\/p>\n In this guide, we cover the essential how-tos and features you need to know before opening a stocks and shares ISA, and we also reveal the best stocks and shares ISA providers for 2021.<\/p>\n