A stocks and shares ISA is a tax-efficient investment account. It lets you invest in the stock market without having to pay UK taxes on any gains you might make. Whereas a cash ISA usually comes with a defined expected return, the performance of your stocks and shares ISA depends on the returns of the investments inside it, incorporating the risk of the stock market.

Please note that tax treatment depends on individual circumstances and may be subject to change in the future.

Each tax year (6 April - 5 April) you have a £20,000 ISA allowance, which you can make use of across different types of ISA. This means that, if you only choose to use a stocks and shares ISA, you can add up to £20,000 in the current tax year to use for investing. This allowance doesn’t carry over if you don’t use the full amount, and you will get a new £20,000 allowance at the start of the next tax year. There is no ceiling to the amount you are allowed to build up within your ISA accounts, through added money and potential investment growth, and maintain your tax efficiencies.

You can open and invest in as many stocks and shares ISAs as you like. Keep in mind that you can contribute a total of £20,000 across all of your ISAs over the tax year (6 April - 5 April).

Yes. You can sell investments and withdraw cash from your stocks and shares ISA at any time, although there may be settlement periods to factor in. Be aware that, depending on your stocks and shares ISA provider, you may not be able to take money out and put it back in without affecting your current annual ISA allowance. For example, if you were to add £5,000 to your ISA and then withdraw it, your remaining allowance would be £15,000. This applies to Robinhood’s stocks and shares ISA.

All investing carries risk but your overall risk profile and the natural ups and downs your investments experience is all due to the investments you choose, not the account they’re in. Stocks and shares ISAs are sometimes referred to as ‘tax wrappers’ because they wrap your investments with tax efficiencies. This means that, rather than the account itself carrying risk, you get to choose your own risk level through the investment decisions you make.

With Robinhood, you can invest in a stocks and shares ISA with just $1. Fractional shares allow you to invest in certain stocks that cost hundreds or thousands of dollars with as little as $1. This gives you the flexibility to invest as much as you want in the companies you believe in, or get your toes wet without committing to an entire share. Fractional shares can also help you manage risk more conveniently. Since you’re not locked into purchasing full shares, you can diversify your portfolio with smaller amounts of money.