One of the most powerful ways to grow your wealth over the long term is by investing tax-efficiently. This is why InvestEngine offers both ISAs and SIPPs - two accounts which give you valuable tax benefits when you invest.
Here’s how they work, and how they could help you keep more of your returns.
What is an ISA?
An ISA (Individual Savings Account) allows you to invest without paying any capital gains tax or income tax on your returns.
- You can invest up to £20,000 per tax year (2025/26 allowance)
- You won’t pay tax on any profits, interest, or dividends
- You can withdraw money at any time, with no penalties
- You can transfer ISAs to InvestEngine from another provider
Our Stocks & Shares ISA is free to use. You can choose between a DIY Portfolio or a Managed Portfolio and LifePlans, depending on how hands-on you want to be.
What is a SIPP?
A SIPP (Self-Invested Personal Pension) is a long-term savings account designed for retirement. It’s ideal for building your pension in a flexible, tax-efficient way.
- You’ll receive tax relief on contributions (up to certain limits depending on personal circumstances)
- Investments grow free from capital gains and income tax
- You can start accessing your pension from age 55 (rising to 57 on 6th April 2028)
InvestEngine’s SIPP gives you full control, with the same low-cost ETF access and commission-free investing as our other account types.
Not sure how long to invest for? Read more here
ISA or SIPP- or both?
You don’t have to choose one or the other, many investors use both:
ISAs offer tax-free growth and withdrawals, and you can access your money at any time without penalties. This makes them ideal for medium- to long-term goals where flexibility is key.
SIPPs (Self-Invested Personal Pensions), on the other hand, are designed specifically for retirement saving. They offer generous tax relief on contributions, which can significantly boost your pension pot over time. However, your money is locked in until at least age 55 (rising to 57 on 6th April 2028), and withdrawals are subject to pension rules.
In short: if you want access and flexibility, an ISA may be better., if you're focused on maximising retirement savings and tax relief, a SIPP could be the better choice. But you don’t have to choose one or the other, you can have both at the same time, and can hold multiple portfolios across both account types, tailored to different needs.
Key benefits of tax-free investing
- Keep more of your gains
- Avoid surprise tax bills
- Stay focused on long-term growth
And because we don’t charge account fees for DIY ISAs or SIPPs, more of your money stays invested and working for you.
Want to get started?
Explore our ISA and SIPP pages for full details or check our articles on ISA transfers and pension contributions.
When investing your capital is at risk, tax treatment dependent on individual circumstances