Disclaimer: Our website and publications aim to give you general information to help you make financial decisions. It is not advice, nor can it take account of your own particular circumstances. Our helpline can answer general enquiries about financial products and services on 0300 500 5000, and give you information and pointers to help you work out what’s right for you. For advice with a view to making decisions about your own circumstances you should consult a financial or other professional adviser.

© The Financial Services Authority.

Follow us on Twitter for updates, links and the latest news

Tax wrappers

A tax wrapper can be wrapped around either the underlying investment or the pooled investment, and means you pay less or no tax. Examples of tax wrappers include ISAs (Individual Savings Accounts) and pensions.


ISAs

You can invest in two separate ISAs in any one tax year: one cash ISA and one investment ISA. This can be with the same or different providers. Because of the tax breaks, there is a limit to how much you can put in an ISA.

For more information on ISAs see Cash ISAs and Investment ISAs.

Pensions

A pension is a long-term investment with a tax wrapper and special rules (about how much you can invest, when and in what form you can take benefits). You get tax relief on your contributions up to a set limit and your income is taxable when you receive it at retirement.

See the Pensions section for full details about pensions.