What are the benefits of investing within an ISA?
ISAs are tax efficient products. You pay no Capital Gains Tax on profits realised within the wrapper. Although, since April 2004, tax credits can no longer be reclaimed on equity dividends, interest earned on corporate bonds and gilts remains tax free. Higher rate and additional rate taxpayers benefit even further as they do not have to pay any higher rate tax on share dividends. You don’t have to declare income and Capital Gains from ISA savings and investments on your tax return. You can take your money out at any time without losing tax relief. However, please be aware that once you withdraw funds you can’t reintroduce them, unless you have not used your full ISA subscription for the current year.
