ISA stock and shares is an investing plan that allows you to put your money in a wide range of investment portfolios such as open-ended investment companies, investment trusts and also government and corporate bonds. This then means that the investment can either go down or up depending on the market trends. We are at liberty to buy our shares and then put them in an ISA. The investment can be in the range of $10, 000 upwards on any given tax year.

The ISA stocks and shares are not exempted form tax deductions. The only way through which we can save quite significantly on tax is when we buy share-based investments such as OEICs and unit trusts. There are times though when we will be required to pay capital gains tax on the same investment. If we decide to use our stock and shares to make an interest generating investment such as corporate bonds, we will then be subjected to tax-free interest regardless of the tax band we are in.

The charges for ISA stocks and shares are used for the payment of commissions to financial advisers, pay fund managers and also cover administration costs. They however vary depending on the kind of investment we have made. It is however important to note that they are in no way higher than those we would pay for investing outside ISA. There can also be a transfer of cash ISA into stocks if we so wish without necessarily affecting the allowance on the current year ISA.