ISA rules, limits and tax benefits explained
With investment, your capital is at risk. Taxation depends on individual circumstances. ISA and tax rules may change.
ISAs (Individual Savings Accounts) are simple accounts for making tax-free savings and investments. The Government introduced them in 1999 to encourage people to save for the future.
In an ISA any interest you earn from cash savings or investment gains you make are tax-free. Any investments you hold in a Stocks & Shares ISA are also free from capital gains tax. You don’t have to declare ISAs on your annual tax return.
Because ISAs come with such generous tax breaks there is a limit to how much you can pay into them each year. This is called your ISA allowance. This tax year your ISA allowance is £20,000 and you can also pay £9,000 into a Junior ISA for children.
Yes, transferring ISAs between providers is easy. People often transfer their ISAs because they are unhappy with their level of service, want to consolidate their investments or are switching from Cash ISAs to Stocks & Shares ISAs. Your ISA allowance isn’t affected when you transfer old ISAs to a new provider.
Speak to our experts for more information on ISAs or to find out about our Stocks & Shares ISA.
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