Glossary · Tax wrappers
ISA
Individual Savings Account
A UK tax wrapper: returns on investments held inside it are free of UK income tax and capital gains tax.
An ISA is not an investment. It is a wrapper around investments — the fund you hold inside a stocks and shares ISA behaves exactly as it would outside one; what changes is the tax treatment of its income and gains.
Each tax year an individual can pay in up to the annual subscription limit across their ISAs. Contributions come from money that has already been taxed; there is no relief going in, and no further UK tax on the way out.
Not every fund can be held in an ISA. A stocks and shares ISA can hold UK and recognised funds, investment trusts, and shares and exchange-traded products listed on a recognised stock exchange. There are two exceptions. Crypto ETNs: since 06/04/2026 they cannot be added to a stocks and shares ISA and can go in an Innovative Finance ISA instead. And overseas funds that are not UCITS recognised in the UK, such as Swiss-domiciled ETFs: HMRC’s list of qualifying funds does not take them in, however they are listed. Platforms also differ in what they will accept. The ISA flag on this site means the kind of product usually qualifies; it is not a substitute for checking with your platform.
How we calculate it
Eligibility flag set by Fundology from the product type under HMRC rules: off for crypto ETNs and for overseas funds that are not UK-recognised UCITS. Not checked against any platform.
On Fundology: Funds by category
Related terms
- SIPPA UK personal pension that lets the holder choose the underlying investments themselves.
- Capital Gains TaxUK tax on the gain made when disposing of an asset held outside a tax wrapper.
- UCITSA European regulatory framework for retail funds, setting rules on diversification, liquidity and disclosure.
Definitions describe how a term is used on Fundology. This is information, not advice.