Individual Savings Accounts

Give yourself a tax break

Individual Savings Accounts (ISAs) are virtually tax-free savings, which means that you do not have to declare any income from them, and you can use an ISA to save cash or invest in stocks and shares.

What can you save or invest in an ISA?

ISAs can be used to:

• Save cash in an ISA and the intrest will be tax-free

• Invest in shares or funds in an ISA any capital growth will be tax-free and there is no further tax to pay on any dividends you receive

ISA Contribution Rules…

Due to the tax advantages of an ISA, the goverment sets limits on how much you can invest in a given tax year.In the current tax year (2011/2012) the maximum you can invest overall is £10,680.

There are only two types of ISA – a Cash ISA and a Stocks and Shares ISA.

You can save up to £5,340 in to a cash ISA each tax year.

Or you can invest up to £10,680 in to a stocks and shares ISA each tax year.

Make sure that you are using your ISA allowance to its full advantage.