These TAX FREE savings plans were introduced in 1999 to replace the old personal equity plans (PEP) and tax exempt special savings accounts (TESSA).

There are five main types of ISA - the cash ISA, stocks & shares ISA, "Help to Buy" ISA, the "Junior ISA" and the new "LISA", the Lietime ISA.

The new LISA is only for investors aged beteen 18 and 40 saving up to £4000p.a.

ISA plans, TAX FREE in the hands of the investor, can accept periodic investments (e.g. monthly) or one-off, single lump sum, payments. When started the life of this particular investment was ten years from 1999/2000 but has been extended indefinitely. Individual Savings Accounts are reviewed by the government regularly to evaluate what is to happen to them in the future.

The maximum total investment 2020/21 is £20,000.

[Plans taken out between April 1999 and April 2004 benefited from a further 10% "tax credit" on dividends from UK equities. This was not extended in any recent Budget speech so "equity ISA plans" will loses out a little because of this.]

Changes in 2002/03 mean that ISA plans can invest in wider ranges of investment.

The Junior ISA was launched on 1 November 2011.

All ISA investments are tax free with no tax to pay on any interest or gains.

As always, we remind everyone that the value of investments such as this is not guaranteed. The value can go up and down dependent on performance.