What is an Isa and how might the rules change?

Chancellor Rachel Reeves has shelved any immediate changes to tax-free Individual Savings Accounts (Isas).

But the Treasury is still keen to encourage more investment in stocks and shares.

An Individual Savings Account (Isa) is a savings or investment product which is treated differently for tax purposes.

Isas are offered by a host of banks, building societies, investment companies and other financial providers.

Any returns you make from an Isa are tax-free, but there is a limit to how much money you can put in each year.

The current £20,000 annual allowance can be used in one account or spread across multiple Isa products as you wish.

These accounts do not close automatically at the end of the tax year. When the next tax year begins, you can open a new Isa or – in some cases – can keep adding money to your existing accounts.

You…