Individual Savings Account (ISA)
At the start of the 1999/2000 tax year the Individual Savings Account (ISA) was introduced and replaced the PEP and the TESSA.
Two main types of ISAs were introduced to replace PEPs and TESSAs: the maxi ISA and the mini ISA.
You can save cash in an ISA and any interest you earn will be tax-free. You can also invest in shares or funds in an ISA where you will not pay tax on any capital growth or dividends that you receive.