Individual Savings Accounts (ISAs)
Individual Savings Accounts (ISAs) help you save tax. This guide gives you some handy tips to enable you find the right ISA.

   Tax breaks

The government wants to encourage us to save and invest our hard-earned cash, hence ISAs.

  • If you put cash in an ISA then any interest you earn on deposits is tax-free. In other words you would receive 25% more interest if you were a basic rate taxpayer and 40% more interest if you were a higher rate taxpayer.

  • If you receive any dividends from UK shares in an ISA you will receive a 10% tax break.

  • You can avoid paying capital gains tax if the value of the share holdings that are protected by an ISA increase.


     
     

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