How do ISAs work?

An ISA shelters your investments from personal income tax and capital gains tax.

You can subscribe to an ISA if you are:

  • Aged 18 or over (16 or over for a cash ISA)
  • Resident and ordinarily resident in the UK for tax purposes

There are four main types of ISAs; investing in either stocks and shares ISA, cash ISA, Innovative Finance ISA or a Lifetime ISA.

  • You can invest up to £20,000 in your ISA during the 2023/2024 tax year
  • You can transfer money held in an ISA from stocks and shares into cash and vice versa, without affecting your annual allowance
  • You can choose how to split your tax-efficient savings yourself. For example, you can save the full amount in stocks and shares or the full amount in cash – or you can invest in a combination of the two depending on your individual investment needs

The value of your investment can go down as well as up so you might not get back the amount you put in. 

The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.

Please note that any losses made in an ISA cannot be used to offset gains elsewhere. 

The views expressed on this page should not be taken as a recommendation, advice or forecast.


The M&G ISA is a stocks and shares ISA only. Due to our focus on long-term investing, The M&G ISA is not a Flexible ISA, Innovative Finance ISA or a Lifetime ISA.

With no personal liability to tax on interest payments, dividend payments, or capital gains to pay and no need to declare ISAs on a tax return, the potential benefits of ISAs are certainly impressive.


Within The M&G ISA you can hold a dynamic mix of equities (shares in a company), bonds (a loan in the form of a security, usually issued by a government or company, also known as fixed income), commercial property and even multi-asset funds to suit your individual needs.


You will also benefit from our size, scale and nearly 100 years of experience in the investment industry. Our expertise in research, market analysis and decision-making helps us to invest your money responsibly.


You can invest up to £20,000 in an ISA with either a lump sum or with regular contributions.


The M&G Junior ISA

Junior ISAs offer a tax-efficient way to save for a child’s future. No one knows what the economic situation will be like when your children or grandchildren have grown up, but we believe the earlier you start, the greater the service you are doing them.


Junior ISAs offer similar tax advantages to ‘adult’ ISAs, but with a lock-in, making the child’s investment inaccessible until they turn 18. Like an ISA, Junior ISAs can invest in equities, bonds, property and even multi-asset funds, giving you flexibility over the future of your child’s long-term savings.


A Junior ISA must be opened by either the child themself if aged 16 or over and investing on their own behalf, or by someone with parental responsibility or legal guardianship for the child. This person will be the ‘Registered Contact’ for the account. Once the account has been opened, anyone can gift or contribute money to the account.


You can invest up to £9,000 in a Junior ISA this tax year with either a lump sum or regular contributions.


Additional Permitted Subscription (APS) ISA

An APS ISA allowance is an additional allowance which you are granted on the death of your spouse or civil partner. You can either use your allowance by transferring the cash to us so you can buy M&G funds or, where you have inherited the deceased's assets, instruct an in-specie transfer. Further information can be found in our APS section.

Transfer an ISA

Thinking of transferring an ISA?

Having ISAs spread across different providers could make it difficult keeping tabs on what is going on with each of them. Bringing your ISA investments into fewer or even into one place could reduce the cost, paperwork and make it more convenient and easier to manage. 

If you have an ISA, Junior ISA or even a Child Trust Fund (CTF) from previous tax years with other providers, it’s easy to transfer them to M&G. They’ll keep all their tax benefits and we won’t charge you a penny to transfer. But, it’s always best to check with your current provider first because they may apply a charge their end when you transfer your investment elsewhere.

Transferring your ISA to M&G won’t affect its tax status or impact your ISA allowance for the tax year. But, you should speak to a financial adviser if you are unsure whether an investment is right for your individual needs. Please remember that while your investment is being transferred it will be out of the market and will not lose or gain in value.


Our charges vary between the funds that you can invest in, and then by the class of share they might hold. 

For each fund, you will pay an ongoing charge (which consists of an annual charge and extraordinary expenses) plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments). Please see our Fund charges page for more details.

We like to keep our charges simple. For private (non-advised) investors there are only two share classes to choose from when you invest.

  • Sterling Class A Shares are for those with holdings up to £499,999
  • Sterling Class I Shares are for fund holdings over £500,000

Learn more about share classes on our Share Classes page, or by downloading our Important Information for Investors document where you can find information about the specific share classes available in your choice of fund(s).

Once you have chosen your share class, you need to decide how you would like your money to work for you.

You can choose to receive an income from your investment and have this paid into your bank account, or you can choose to have any income your investment generates kept within your fund to add to your investment; this is known as accumulation.

  • Accumulation shares - keep income within the fund rather than paying it out. Funds with Accumulation shares are shown with Accumulation (or Acc) after their fund name. 
  • Income shares - If you would prefer to receive an income from your investments, you can choose income shares when you invest. Funds with income shares are shown with Income (or Inc) after their fund name. With income shares the income could be paid monthly, quarterly, six monthly or annually depending on the fund.

If you currently reinvest your income to purchase further shares of the same fund, you can continue to do so. However please note that where income from underlying investments is saved up within the fund throughout the accounting period and reinvested to buy more shares on the reinvestment date, the income is not exposed to any market movements (up or down), unlike accumulation shares which reinvest income automatically once received.

There are no extra charges or hidden costs, for example there are no entry or exit charges on your investment.

Our Charges Calculator

We believe it is important that you understand our charges when you invest with us.

This tool can help you see the amount of charges, in pounds and pence, you might expect to pay on the different funds in our range. Please note that this tool is for guidance only and charges are subject to change.

Calculate now

View our Table of ongoing charges

Our funds

Whichever fund(s) you choose for your ISA and however you’d like to invest, there’s no substitute for experience. When you invest with M&G, you benefit from our size, scale and nearly 100 years of expertise in the investment industry.

We have a range of over 45 funds to help you achieve your goals across different asset classes including equities (shares in a company), bonds, property and multi-asset.

Choosing the right mix of asset classes

Find out more about the different asset classes available to you.

Choosing a fund

View the funds available in the Fund Centre.

Please read the Important Information for Investors document for more information on share classes, charges and share types.

Target Market Information

This document explains who we believe the product is, and is not, suitable for. This is based on M&G’s opinion and doesn’t take into account your individual circumstances.

Guides to investing

At M&G, understanding is at the heart of what we do. Our guides will help you broaden your investment knowledge and gain a deeper understanding of your investment choices.

How to invest

By monthly Direct Debit - Initial amount of £10 and a top-up amount of £10.

By lump sum investment - Initial amount of £500 and a top-up amount of £100.

From 6 April 2023 to 5 April 2024 the maximum you can invest in an ISA is £20,000.

Invest by phone

Call our Investment Helpline on 0800 389 8600 from 08:00 to 18:00 Monday to Friday and from 09:00 to 13:00 on Saturday*.


Remember to have your M&G Client Reference to hand if you’re already an M&G customer, and your National Insurance number for new ISA investments. You’ll also need your debit card**.


*All calls are free within the UK. For your security and to improve the quality of our service we may record and monitor telephone calls.


**We accept Maestro, MasterCard Debit, Visa Debit & Visa Delta debit cards.

Invest by post

If topping up your ISA please download the M&G ISA Direct Debit/Additional Contribution Form. You will need to complete a new M&G ISA application form if one full tax year has elapsed since your last M&G ISA subscription.


If you would like to invest in a Junior ISA please download the M&G Junior ISA Application Form. If you’re topping up a Junior ISA please download the M&G Junior ISA Direct Debit/Additional Contribution Form.


Send your completed form to us at:

M&G Securities Limited

PO Box 9039


CM99 2XG

Before investing please ensure you read the Important Information for Investors document and the relevant Key Investor Information Document (KIID(s)), Prospectus and Costs and charges illustration for the funds you would like to invest in. 

Further information


Switching between our products and funds is easy and can be far cheaper than starting a new investment.
More about switching

My Account

You can now switch your OEIC investments to ISAs in My Account.
Find out more

Looking for advice

If you’re looking to invest, switch funds or transfer an investment, there’s a few reasons you might consider getting financial advice.
Find out more

Contact the team

Contact us