Tax-free savings and investments are not widespread, but there are a few products out there that will leave you without a tax bill to pay. 

Cash Isas

Cash Isas are completely free of income tax and capital gains tax. They are available to UK residents over the age of 16.

In 2014-15 you can pay up to £5,940 into a cash Isa. You can also switch previous years Isas to new Isa providers without affecting your current year's allowance. It is possible to transfer money held in a cash Isa into a stocks and shares Isa.

Stocks and shares Isas

Stocks and shares Isas aren't completely tax-free, because dividends on shares are paid with 10% tax already deducted. In 2014-15, the total annual Isa allowance is £11,880. You have to be at least 18 years old to invest in a stocks and shares Isa.

You can choose to invest the whole of your allowance into a stocks and shares Isa if you wish, or divide it up accordingly, paying up to £5,940 of it into a cash Isa and the rest into a stocks and shares Isa.

Junior Isas and Child Trust Funds

Child trust funds are investment funds for children are also tax free, and can be rolled over into an Isa when they mature on your child's 18th birthday. 
There are two types of child trust funds: cash child trust funds, which are completely tax-free, and share-based child trust funds which, like stocks and shares Isas, have dividends paid to them with 10% tax already deducted. 

Junior Isas replaced child trust funds in November 2011. The total amount you can invest in 2014-15 is £4,000 - this can be all in one type of account or split between a Junior Cash Isas and a Junior Stocks and Shares Isa.

Go further: Junior Isas - find out the best rates available for this childrens' savings account.

National Savings & Investments

National Savings & Investments (NS&I) offer several tax-free products including a cash Isa, savings certificates (fixed-interest and index-linked) and children's bonus bonds.

Prizes and winnings