| Type of ISA | Description | Annual Contribution Limit (2024/25) | Key Features |
| Stocks and Shares ISA | An account that allows investments in stocks, shares, and bonds with tax-free gains. | £20,000 combined across all ISAs | – No Capital Gains Tax (CGT) on investment gains.
– No tax on dividends or interest.
– Suitable for long-term investing.
– Risk involved due to market fluctuations.
|
| Junior ISA (JISA) | A savings or investment account for children under 18, with tax-free returns on savings or investments. | £9,000 | – Managed by parents or guardians.
– Child gains control at age 16, but can only withdraw at age 18.
– Available in both Cash and Stocks & Shares versions. |
| Cash ISA | A savings account where interest is paid tax-free. | £20,000 combined across all ISAs | – No tax on interest earned.
– Can be fixed-rate or instant access.
– Could be good for risk-averse savers. |
| Innovative Finance ISA | Allows peer-to-peer lending or investing in crowdfunding projects with tax-free interest and gains. | £20,000 combined across all ISAs | – Tax-free interest on peer-to-peer lending.
– Higher risk, as returns depend on borrower defaults and investments in new projects. |
| Lifetime ISA (LISA) | Designed to help save for first-time homebuyers or retirement. Government adds a 25% bonus on contributions. | £4,000 (LISA) + £1,000 bonus | – For those aged 18-39.
– Can save up to £4,000 per year.
– Government adds a 25% bonus up to £1,000 per year.
– Withdrawal restrictions apply before age 60. |
| Help to Buy ISA | Aimed at first-time homebuyers with a government bonus for purchasing a home (closed to new applicants but existing accounts still valid). | £200 per month | – Bonus of 25% added on amounts saved, up to a £3,000 maximum bonus.
– Can be used to purchase properties up to £250,000 (£450,000 in London). |
The annual ISA allowance for the 2025/26 tax year is £20,000. You can divide this across different ISA types (except for Lifetime ISAs which have a separate limit). All returns within any ISA are tax-free, making them a valuable savings tool.
Please note that Chelsea only offer Stocks and Shares ISAs and Junior ISAs
