Usually when you invest, you have to pay tax on any income or capital gains you earn from your investments. But with an ISA, you set up with an accredited and regulated ISA provider and, provided you stick to the rules on how much you can pay in, all capital gains and income made from your investments won’t be taxed. Every tax year you have an ISA allowance, which is currently £20,000 for the 2020-21 tax year.

ISAs also make your life easier. Any returns that you earn in your ISA do not need to be recorded in your tax return, as they are tax free. So, you don’t need to keep track of the capital gains you make on these investments and if all your savings and investments are in ISAs, it may mean that you don’t need to complete a tax return.