ISA or SIPP? Find what works for you
Tax-efficient ways to make the most of your money and reach your goals
Important information - investment values can go down as well as up, so you may get back less than you invest. SIPP/ISA eligibility and tax treatment depends on individual circumstances and tax rules may change. Withdrawals from a Junior ISA are not possible until the child reaches age 18. You cannot normally access money in a pension until age 55 (57 from 2028).
Don't pay more tax than you need to
ISAs and Self-Invested Personal Pensions (SIPPs) are both tax-efficient ways to save as you won't pay UK tax on any growth in your cash or investments.
ISA
SIPP
Make the most of your tax allowances
You have until 5 April to make use of this year’s ISA and SIPP allowances. They reset at the start of each tax year (6 April to 5 April the following year). The allowances are separate, so you can pay into both accounts.
- Save up to £20,000 each tax year.
- You won't pay UK tax on growth, income or withdrawals.
- Take your money out at any time.
- Use it for goals like university fees, a house deposit, wedding or alongside your pension to save for retirement.
- Set up a regular savings plan from £25 or invest a lump sum from £1,000.
- Choose from funds, shares (UK, US and Europe) investment trusts and exchange-traded funds (ETFs).
- UK residents aged 18 and over can open one. Open a Junior ISA for under-18s.
- You can contribute and get tax relief up to the Annual Allowance of £60,000 or 100% of your earnings if you earn less than this. For example, for every £80 you pay in, HM Revenue & Customs (HMRC) will add £20 basic-rate tax relief (20%), making a total of £100. Even if you have little or no earnings, you can still pay in up to £2,880 each tax year into your pension. HMRC will add basic-rate tax relief (20%) to each contribution so you could have up to £3,600 in total. Learn more about pension allowances.
- If you pay a higher or additional rate tax, you can claim extra relief through your Self-Assessment tax return at the end of the tax year.
- If you've used your full annual allowance this tax year, you may be able to use the carry forward allowance. It lets you use any unused allowances from the previous three tax years.
- You won’t pay Capital Gains Tax on any growth in your investments.
- You can usually start taking out money from age 55 (rising to 57 from 2028).
- You can usually take up to 25% tax free, within your lump sum allowance (LSA). The rest is taxed as earnings.
- You can build up a savings pot to take an income from when you reach retirement. Your money’s locked away so you’re not tempted to dip in early.
- Set up a regular savings plan from £20 or invest a lump sum from £800.
- Choose from funds, UK shares, investment trusts and exchange-traded funds (ETFs).
- Available to UK residents aged 18 or over (you can open a Junior SIPP for under 18s).
Why invest with Fidelity?
1.7 million customers*
Our customers trust us with over £40 billion of investments, supported by our UK and Ireland-based customer service teams.
Over 50 years' experience
We've helped people just like you invest with confidence and build a more secure financial future since 1969.
Independently recognised
We've been a Which? Recommended Provider for Self-Invested Personal Pensions for five years running.
Easy to access Stocks and Shares ISA
Save for retirement with a SIPP
Move an ISA or SIPP to Fidelity
If you’ve used your full pension and ISA allowances this tax year, you can still invest using our Investment Account.
If you have more than £100,000 to invest, our financial advisers can help you make the most of your money (this is a paid-for service). Just call us on 0800 222 550 for a free, no-obligation discussion about your needs.
FAQs
Most people get a personal allowance - an amount of income you don't have to pay tax on. Any income above this is taxed at your income tax rate. You also have tax-free allowances for things like savings interest, dividend income and capital gains. An ISA is a tax-exempt account - as long as you don’t contribute more than its annual allowance allows. SIPP contributions are eligible for tax relief within pension allowances.
Yes, an ISA is tax-efficient for everyone, including higher-rate taxpayers. There’s no tax to pay on money you receive as income from your ISA investments. There’s also no capital gains tax to pay on growth.
Yes, a pension is tax-efficient for everyone, including higher-rate taxpayers. You receive tax relief at your marginal rate when you make contributions and can withdraw up to 25% of the value of your pension as a tax-free lump sum, as long as this amount is not more than your remaining lump sum allowance. Other withdrawals, or payments from an annuity, are then taxed as income.
No, you don’t receive upfront tax relief on ISA contributions. However, you can take a tax-free income from your ISA later in life, whereas any income from a pension (after the 25% tax-free lump sum) is taxed at your marginal rate.
Yes, you can hold a SIPP together with a workplace or personal pension that you may have with us or another pension provider. This includes legacy defined benefit schemes, defined contribution schemes or stakeholder pensions.
Important information - this is not a personal recommendation for a specific investment. If you're not sure which investments are suitable for you, consult Fidelity's advisers or another authorised financial adviser.
*Source: Fidelity, as at 31.12.25.
