1. What is a tax wrapper?
A tax wrapper is a type of investment account that offers tax benefits. The three main types on InvestEngine are:
- ISA (Individual Savings Account)
- SIPP (Self-Invested Personal Pension)
- GIA (General Investment Account)
Each wrapper has different tax rules, limits, and purposes.
2. What is a Stocks & Shares ISA?
A Stocks & Shares ISA lets you invest without paying:
- Capital Gains Tax on profits
- Income tax on dividends or interest
You can invest up to £20,000 per tax year (subject to change). This limit applies across all ISAs you hold, not just with InvestEngine.
⚠️ ISA cash still uses your allowance even if not invested.
3. Can I have more than one ISA?
Yes, you can have multiple ISAs, but you can only subscribe to one Stocks & Shares ISA per tax year. You can transfer ISAs between providers without affecting your annual allowance.
4. What is a SIPP?
A SIPP (Self-Invested Personal Pension) is a pension account that allows you to manage your own retirement investments. Key features:
- Tax relief on contributions (usually 20%, more for higher-rate taxpayers)
- No tax on investment growth or dividends
- Access from age 55 (rising to 57 from 2028)
Annual contribution limits apply (usually £60,000 or your annual income, whichever is lower).
Note: SIPPs are long-term accounts - withdrawing early can lead to penalties.
5. What is a General Investment Account (GIA)?
A GIA is a flexible, taxable investment account. It has:
- No annual limit on how much you can invest
- No tax benefits, but fewer restrictions
You may need to pay tax on capital gains, dividends, or interest, depending on your circumstances.
6. Can I transfer between wrappers?
You cannot directly transfer from a GIA into an ISA or SIPP, but you can:
- Sell investments in your GIA
- Withdraw the cash
- Reinvest it in an ISA or SIPP (subject to limits)
ISA and pension transfers from other providers are supported — see our transfer FAQs for more details.
7. Which wrapper should I choose?
- Use an ISA if you want tax-free investing and flexible access.
- Choose a SIPP for retirement-focused investing and tax relief.
- Use a GIA if you’ve used up your ISA allowance or need fewer restrictions.
You can have multiple account types with InvestEngine to suit different goals.
8. Do all wrappers offer the same investment options?
Yes - with InvestEngine, you can invest in the same range of ETFs whether you’re using an ISA, SIPP, or GIA. The main differences are in tax treatment and rules around contributions and withdrawals.