Individual savings accounts (Isas)
Individual Savings Accounts (Isas) are a way of saving and investing without paying income tax or capital gains tax. An Isa is not an investment in itself, but a 'wrapper' into which you can put investments. There is a limit on the amount you can save in an Isa each year. The limit for 2012/13 is £11,280, of which up to £5,640 can be put into a cash Isa. For 2013/14, the limits are £11,520 and £5,760.
• For an excellent introduction to investing tax-free in Isas, watch Tim Bennett's video tutorial:
Why you need an Isa