Overture Error (3)Object reference not set to an instance of an object. TAX RULES FOR ISAs - TAX FREE ALLOWANCE

Tax Rules for ISAs

tax rules for isasTax Rules for ISAs

The tax rules for ISAs are different from normal bank accounts; and as a result, they are a good way of saving money. With an ISA, you can invest up to £7,200 per tax year (but only a maximum of £3,600 of that allowance can be put into a Cash ISA), but the money is exempt from tax, which means you get to keep everything you invest.

The Tax rules for ISAs are:  

  • No tax is paid on any of the income you receive from your ISA investments including on dividends, interest and bonuses.
  • No tax is paid on capital gains arising on your ISA investments.
  • If you have an ISA life insurance policy, the insurer does not have to pay tax on income and capital gains on investments and you do not have to pay any tax when the policy pays out.
  • You can take your money out of your ISA at any time and you do not lose the tax relief.
  • You do not have to tell HMRC that you have an ISA and do not have to declare any income or capital gains received from it.

For a selection of current ISA deals, see the table below:

ISA Provider Investment ISA Cash ISA
Icesave Icesave No Yes More Info
Legal & General Legal & General Yes No More Info
Virgin Money Virgin Money Yes No More Info
TD Waterhouse TD Waterhouse Yes No More Info

Other ISA Resources:

FREE ISA Brochures
FREE Brochure on Managing Your ISA Funds

Alternatively click on isa advertising links below:

Please bear in mind that:
Investment ISAs are designed as medium to long term investments, for example at least five years.
The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
If you choose an index-tracking trust which invests overseas, exchange rate variations may cause the value of your investment to increase or decrease.
If you unsure what Investment ISA plan is  right for you speak to an independent investment adviser.

Special offers

Investment Enquiry FormFree Investment Advice