Monday, January 09, 2006

ISAs: Tax Free Gains Part 1

ISAs will be heavily promoted by financial institutions in the next few months. Individual Savings accounts (ISAs) are simply savings vehicles which allow you to keep gains without tax being deducted.

Eg you make 5% gain on £1000 you keep everything
Normally you tax would turn it into a 4% gain (standard rate) or a 3% gain (higher rate tax band)

There are 2 basic types:

Mini ISA: Maximum Investment £4 000 per year
Maxi ISA: Maximuum Investment £7 000 per year

To be continued in
Part 2

ISA Deadline 5 April.Use your Allowance or Lose It!

Related: ISAs Part 2: Mini & Maxi, Best Share ISAs, Maximise ISA Potential, ISA Deadline 5 April
Award Winning Current Account, Banks are Coy About Part1, Financial Advice: 1st Question to Ask

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