Use our Stocks and Shares ISA calculator to project how your investments could grow, completely free from UK tax. Enter your annual investment, expected annual growth rate, and the number of years to see your projected portfolio value and the tax you save compared to a general investment account.
| Year | Invested | Portfolio Value | Total Growth |
|---|
A Stocks and Shares ISA is a tax-free investment wrapper. Any investments held inside it are sheltered from UK tax - you pay no Capital Gains Tax (CGT) on profits, no Income Tax on dividends, and no tax on interest. You can invest up to £20,000 per tax year across all your ISAs combined.
Inside a Stocks and Shares ISA, you can invest in a wide range of assets: shares, investment funds, ETFs, investment trusts, bonds, and more. The choice of platform and investments is yours. Most long-term investors choose low-cost global index funds as their core holding.
The annual ISA allowance is £20,000 per person per tax year. This has been unchanged since 2017-18. The allowance runs from 6 April to 5 April. Key rules:
20 years = £347k
Cautious assumption
20 years = £437k
FTSE 100 + dividends
20 years = £630k
Global tech-heavy index
The FTSE 100 total return (including dividends reinvested) has averaged approximately 7-8% per year over the long term. The MSCI World index, which includes global developed market equities, has averaged closer to 8-10% per year. Remember these are pre-charge averages and include significant periods of decline.
The tax advantages of a Stocks and Shares ISA are substantial, particularly over long time periods:
| Platform | Annual Fee | Fund Charge Range | Best For |
|---|---|---|---|
| Vanguard | 0.15% (max £375) | 0.06% - 0.22% | Low-cost index funds |
| Trading 212 | 0% (free) | Fund dependent | Zero platform fee |
| Hargreaves Lansdown | 0.25 - 0.45% | 0.06% - 1.5% | Wide investment choice |
| AJ Bell | 0.25% (max £3.50/mo shares) | Varies | Shares and funds |
| InvestEngine | 0% (free) | ETF charges only | ETF-only portfolios |
| Nutmeg | 0.25 - 0.75% | Fund charges extra | Managed portfolios |
The range of investments available inside a Stocks and Shares ISA is broad:
Both ISAs and pensions offer tax advantages for long-term investing, but they work differently:
For most people, contributing to a workplace pension (especially with employer matching) should come first. Once this is maximised, a Stocks and Shares ISA is an excellent second choice for flexible tax-free investing.
The Lifetime ISA (LISA) is a special ISA type for those aged 18-39. You can save up to £4,000 per year and receive a 25% government bonus (up to £1,000/year). The money can only be used to buy a first home (up to £450,000) or from age 60 onwards. Withdrawals for other purposes incur a 25% penalty (which effectively claws back the bonus plus some of your own money). See our Lifetime ISA calculator for projections.
The annual ISA allowance is £20,000 per tax year (2025-26). This can be split between different ISA types - Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, and Lifetime ISA (limited to £4,000) - in any combination, as long as the total does not exceed £20,000.
Inside a Stocks and Shares ISA, all growth, dividends, and interest are completely free from UK tax. There is no Capital Gains Tax (CGT) on profits, no Income Tax on dividends or interest, and no tax reporting required. This is a significant advantage over a general investment account where CGT rates are 18-24% on gains above the annual allowance.
A Stocks and Shares ISA can hold individual UK and international shares, investment funds (unit trusts, OEICs), exchange-traded funds (ETFs), investment trusts, bonds, and gilts. The exact range depends on your platform. Most investors use index funds or ETFs as their core holding.
Historical returns depend on what you invest in. The FTSE 100 has returned around 7-8% annually including dividends over the long term. Global index funds tracking the MSCI World or FTSE All-World have returned 8-10% annually. Past performance does not guarantee future returns. Our calculator uses 7% as a conservative default.
Platform charges typically range from 0.15% to 0.45% per year of your portfolio value. Fund charges (ongoing charges figure) range from 0.07% for index funds to 0.75%+ for actively managed funds. For a £10,000 portfolio, annual costs might be £15-50 for the platform plus £7-75 for fund charges. Low-cost index funds on a low-cost platform minimise drag on returns.
Yes, with most flexible ISAs you can withdraw money at any time and re-deposit it in the same tax year without affecting your annual allowance. However, you should consider investment timing risk - if markets have fallen, withdrawing means crystallising a loss. A Stocks and Shares ISA is best viewed as a long-term (5+ year) investment.
For time horizons of 5 years or more, Stocks and Shares ISAs have historically outperformed Cash ISAs significantly. Over 20 years, the stock market has consistently beaten savings rates. However, investments can fall as well as rise, whereas cash is stable. For short-term goals (under 3-5 years), Cash ISA is safer. For long-term wealth building, Stocks and Shares ISA typically wins.