ISAs - Frequently Asked Questions

What are the tax advantages of ISAs? Can I have more than one provider? Do I need to stick with my bank? Is there a lifetime limit for ISAs? 

James Gard 11 March, 2019 | 8:31AM

How can savers and investors make the most of their ISA allowance? Read our special report to find out

Why is an ISA Tax Free?

ISA investments don’t need to be declared on your annual tax return. Tax is not payable on income or interest and investments held within an ISA are not subject to Capital Gains Tax upon sale, regardless how well your investments have performed. In theory, ISAs can be subject to Inheritance Tax, however, so we would recommend financial advice if you are using them as part of estate planning.

How do the Limits Work?

Our article explains the limits in detail. But it's worth thinking of the £20,000 as the overall limit. You can have £10,000 in a Stocks and Shares ISA and £10,000 in a Cash ISA, or £5,000 in cash and £15,000 in shares - but you have still met the £20,000 limit.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

James Gard  is content editor for Morningstar.co.uk

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