What are the different types of ISA?
Answered 11 March 2026
Based on the available sources, here is a summary of the different types of ISA:
HMRC Guidance / Practice
Adult ISAs
An ISA is a tax-free annual investment product, launched on 6 April 1999 to replace the Personal Equity Plan (PEP) and the Tax Exempt Special Savings Account (TESSA).
When first launched, ISAs had three components — cash, insurance, or stocks and shares — and could be a "mini" ISA (one component) or a "maxi" ISA (more than one component). From 6 April 2005, the insurance component was removed, and from April 2008 the mini/maxi distinction was abolished.
There are now two main ISA components for adult ISAs:
- Cash ISA
- Stocks and Shares ISA (which can include life insurance policies, provided certain conditions are met)
Lifetime ISA
The Lifetime ISA is a distinct type of ISA. Life insurance policies can be held within it since 6 April 2017. It carries a government bonus, which is disregarded as investment income for tax credits purposes.
Junior ISA
Junior ISAs are long-term, tax-free savings accounts for children, having replaced the Child Trust Fund (CTF). They also come in two types:
- Cash ISA
- Stocks and Shares ISA
A Junior ISA may be opened for a child born on or after 3 January 2011.
Note: The available sources reference the Innovative Finance ISA and Help to Buy ISA only indirectly or not at all. For a complete picture of all current ISA types (including the Innovative Finance ISA), you may wish to consult the ISA managers' guidance on GOV.UK or SI 1998/1870 (the ISA Regulations) directly.
Citation sources
An ISA is a tax-free annual investment product and was launched on 6 April 1999 to replace the Personal Equity Plan and the Tax Exempt Special Savings Account (TESSA). When launched, it was made up of three ‘components’ - cash, insurance, or stocks and shares and could be a mix of these components. An ISA comprising of one component only was called a ‘mini’ ISA, whilst an ISA allowing for more than one component was referred to as a ‘maxi’ ISA. From 6 April 2005, the ISA structure was changed. T
The separate insurance Individual Savings Account (ISA) was abolished on 5 April 2005. Since 6 April 2005, provided certain conditions are met, life insurance policies can be held within the stocks and shares ISA, or, since 6 April 2017, within the Lifetime ISA. There is detailed information on ISAs in the ‘ISA managers’ guidance’ published on gov.uk. Insurers can find the guidance useful to check if a life insurance policy can be included in an investor’s ISA. The ISA Regulations themselves are
Probably the most common type of exemption from tax on interest is where the income arises in an individual investment plan. Chapter 3 of Part 6 of ITTOIA05 contains the powers for the Treasury to make regulations for exemptions for certain investments. Two sets of regulations have been made under ITTOIA. Personal Equity Plans (PEPs) (SI469/1989). Individual Savings Accounts (ISAs) (SI1870/1998). Similar powers are provided by The Child Trust Fund Act 2004 under which the following regulations h
Junior ISAs are long term, tax-free savings accounts for children, and have now taken over from the Child Trust Fund (CTF). There are two types: a cash ISA, and a stocks and shares ISA These follow the VAT liability shown above for these types of ISA.
When calculating investment income, disregard the following: The whole amount of the government bonus paid in respect of a Lifetime Individual Savings Account (Lifetime ISA). The whole amount of the governement bonus paid in respect of a Help to Save account.