Choosing the right account
Before buying shares, you need to decide which type of account to use. The main options are:
Stocks and shares ISA
All gains and income are currently sheltered from UK tax, within the £20,000 annual allowance. The most tax-efficient option for most UK investors. A cash ISA vs stocks and shares ISA comparison helps clarify which is right for different circumstances.
Share dealing account
A general investment account has no annual contribution limit. Returns above the CGT allowance (£3,000 in 2026/27) and dividend allowance (£500) are taxable. The appropriate choice for amounts above the £20,000 ISA limit or assets not eligible for an ISA.
SIPP
A self-invested personal pension is designed for long-term retirement saving. Contributions attract tax relief of up to 45%, and investments grow free from UK tax within the pension wrapper. Funds are inaccessible until at least age 57 (rising to 58 in 2028).
