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S&S ISA or Investment Account?

I'm new to all this! If I wanted to invest around £50 per month which type of account would be preferable. What is the difference between a S&S ISA and an Investment Account please? Sorry if I'm being a bit thick.

Comments

  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    An ISA is a wrapper for your investments that will keep them free of all tax. It also reduces the amount of admin work you have to do since you won't need to declare your ISA to the HMRC. Max you can deposit into an ISA per tax year is your ISA allowance, currently £15,240.

    An investment account is subject to dividend taxation and CGT, and you need to include it in your tax return. There's no limit to how much you can deposit.
  • tamiami
    tamiami Posts: 537 Forumite
    Thanks Colsten, I think maybe the S&S Isa may be the best way for me to start.
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