Stocks & Shares ISA

A Stocks and Shares ISA is a tax-efficient investment account available to UK residents. It allows you to invest in a range of assets, with all your returns — including capital gains and dividends — sheltered from UK tax.

Key features of a Stocks and Shares ISA include:

• Tax-efficient investing: yny profits you make are not subject to UK income or capital gains tax
• Wide investment choice: You can invest in assets like stocks and exchange-traded funds (ETFs)
• Annual allowance: you can invest up to £20,000 each tax year

With Revolut's Stocks and Shares ISA, you can invest directly in a wide selection of in-app shares and ETFs, all within this tax-efficient wrapper.

A Stocks and Shares ISA works by acting as a "tax wrapper" around your investments. You contribute money into the account, and this money is then invested in assets like stocks and ETFs.

Here’s a simple breakdown of how it works:

1. Annual allowance: each tax year, you can contribute up to your annual ISA allowance (currently £20,000) into a Stocks and Shares ISA
2. Investment: the money you add is used to buy investments within the account, such as shares in a company or an ETF that tracks a market index
3. Tax-Free growth: any returns your investments generate—whether from dividends or an increase in value (capital gains) — are sheltered from UK tax. This means more of your money stays invested and continues to grow

Revolut's Stocks and Shares ISA is designed to be transparent and low-cost. We do not charge any of the following fees:

• No custody fees: you won’t pay any ongoing fees for simply holding your investments with us
• No subscription fees: there are no monthly subscription fees for maintaining your Stocks and Shares ISA
• No transfer fees: Revolut does not charge any fees for transferring your ISA to another provider

It's important to note that while the ISA itself has no subscription fee, you will need to be on a Revolut plan to access it, and other trading-related fees, such as for trades exceeding your monthly commission-free allowance, may apply.

You can read more about general trading fees in this FAQ.

You can open and contribute to more than one Stocks and Shares ISA in a single tax year. This gives you the flexibility to manage your investments for different goals.

The key rule to remember is that your annual ISA allowance applies to all of your ISAs combined. While you can pay into multiple Stocks and Shares ISAs, your total contributions across all types of ISAs, including Cash ISAs, must not exceed the current annual allowance of £20,000.

To open a Stocks and Shares ISA with Revolut, you can follow these simple steps directly in the app.

1. Download the Revolut App: if you don't have it already, download the Revolut app from the App Store or Google Play Store and sign up for a personal account
2. Navigate to the 'Invest' tab: once logged in, go to the 'Invest' section in your Revolut app's bottom menu and tap 'Start investing'
3. Choose your Stocks and Shares ISA: follow the on-screen instructions to set up and open your new Stocks and Shares ISA. You will need to complete a simple application and declaration form to get started

They are not the same thing. An ISA (Individual Savings Account) is the overall term for a government-backed, tax-efficient savings and investment account. A Stocks and Shares ISA is one of the four main types of ISAs.

The different types of ISAs are:

• Stocks and Shares ISA: for investing in assets like stocks and ETFs
• Cash ISA: for holding cash savings
• Lifetime ISA: for saving towards a first home or retirement
• Innovative Finance ISA: for lending money through peer-to-peer loans

Therefore, a Stocks and Shares ISA is simply the type of ISA that is specifically designed for investing.

A Stocks and Shares ISA is widely considered a worthwhile investment, especially for those with a long-term financial goal. It's a popular and effective way for UK residents to build wealth tax-efficiently over time.

However, whether it's the right choice for you depends on your personal financial situation and goals.

These are the benefits of a S&S ISA:

• Tax-free growth: any profits you make from capital gains and dividends are completely free from UK tax
• Potential for higher returns: over the long term, investments in the stock market have historically outperformed cash savings, which can be eroded by inflation
• Investment choice: you can invest in a wide range of assets, from individual stocks and ETFs to funds, allowing you to diversify your portfolio

Key considerations:

• Risk of loss: unlike a Cash ISA, your capital is at risk, and the value of your investments can go down as well as up
• Long-term commitment: a Stocks and Shares ISA is best suited for a longer-term horizon (typically five years or more), as this gives your investments time to ride out market volatility
• Fees: it's important to choose a provider with a transparent fee structure. With Revolut, you benefit from a low-cost model with no custody fees and no subscription fees for the ISA itself, helping you keep more of your investment gains

Yes, you can withdraw money from a Stocks and Shares ISA at any time. However, it's important to understand how different types of ISAs handle withdrawals and their impact on your annual allowance.

With Revolut's Stocks and Shares ISA, you have the benefit of a flexible ISA. This means you can withdraw cash and pay it back into the same ISA within the same tax year without it affecting your annual allowance.