ISA (Individual Savings Account)
A UK savings or investment wrapper where all growth and income are completely tax-free.
An ISA is a UK account type — not an investment itself — that shields whatever is held inside it (cash or investments) from income tax, dividend tax, and capital gains tax entirely. Each tax year has a fixed contribution allowance; unused allowance doesn't carry over to the next year.
Worked Example
Using the full £20,000 annual ISA allowance and growing it at 6% for 20 years produces a balance with zero tax owed on any of the growth — the same investment outside an ISA would owe capital gains and/or dividend tax along the way.
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