Help & FAQs

What are the tax benefits of investing within an ISA?

Whilst we cannot offer tax advice, ISAs are considered to be tax efficient accounts.

With a cash ISA, interest earned is not subject to income tax.

With a stocks and shares ISA, you pay no Capital Gains Tax on profits realised within the account: equally you cannot offset losses in an ISA against other gains.

Dividend Withholding Tax deducted at source cannot be reclaimed, but you are not liable for further income tax on dividend income. However you still have to pay stamp duty / stamp duty reserve tax on purchases.

Income and capital gains in ISAs do not need to be included on your tax return.

Submitted on 18th Feb 2019

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Risk Warning

The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Selftrade does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.

The extent and value of any ISA tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change.

The extent and value of any SIPP tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change. If your options change regarding an employer's pension scheme you may wish to review your financial situation. Once in a pension your money is only accessible, in general, from age 55.

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