ISAs are a tax-efficient way of investing, helping savers to minimise the tax they pay on their savings and investments.
An ISA is a tax-efficient wrapper into which savers place their investments to protect them from the taxman. Any investment growth, no matter how much, is then free from income and Capital Gains Tax (a 10% tax credit is still payable on UK share dividends and cannot be reclaimed).
As another tax year end approaches, the message for all potential ISA applicants is the same – Either make use of your ISA allowance in the 2013/14 tax year, or lose it forever.
Current ISA limit in the 2013/14 tax year are:
- Up to £11,520 in a Stocks & Shares ISA
- Alternatively up to £5,760 in a Cash ISA, (and the balance in a Stocks & Shares ISA)
Investments have to be completed before 5th April 2014 to be included in this year’s allowance.