skip to main content
ISA Knowledge Base /

The Tax Benefits of an ISA

The Tax Benefits of an ISA

One of the biggest reasons to invest in an ISA is to receive the many tax benefits these savings accounts offer. In fact, these investments are often referred to as a "tax free wrapper," where you can place money to earn interest or returns without having to pay the tax man for any of your earnings. The benefits can be used on either cash or shares, which means you get to control the amount of money you can make tax-free. Tax advantages fall into two categories: capital gains tax and income tax benefits.

ISA Income Tax Benefits

In most situations, any income you earn, through wages, interest or dividends, is subject to income tax. However, that is not the case with ISAs. All of the money you earn on these savings vehicles is completely tax free.

Income tax benefits are just part of the equation when you are considering an ISA, however. The other advantage to these accounts is the capital gains tax benefits you can enjoy.

ISA Capital Gains Tax Benefits

Capital gains tax benefits specifically apply to stocks and shares ISAs. Most investment products are subject to a capital gains tax if the amount of earnings from your shares in a single year exceeds the set limit. This tax requirement is waived for investments in ISAs, making them definitely worthwhile for those who plan to sell or make a great deal from their investment vehicles in a given year.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Income ISA offers up to 7.60% pa paid quarterly

9th October 2017

Inflation reached as high as 2.9% in August as reported by the Office for National Statistics (ONS). As a result, many individuals are looking for ways to receive more income to combat the effect of rising inflation. 

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

ISA.co.uk is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

About us

4.89 Average

35 Reviews

Paul

Very informative, find myself a good ISA account with best return in terms of interest.

Anonymous

Easy to navigate, all required information was to hand. Professional looking site!

Jessica Esa

ISA.co.uk has a really attractive and simplistic design. I've found it easier to use than other similar comparison sites. The products are simply described, it's informative and the pros and cons are really clear. Great website.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Rob Holden

The website was very useful and informative.

Andrew Johnson

ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs

Crowd2Fund

Excellent website - clear and helpful information about different products - and a trustworthy partner.

Anonymous

Quick and professional service provided

Anonymous

Very insightful and easy to navigate.. would recommend to anyone interested

Helen Belcher

Clear concise information that was easy to understand!

Sue

Easy to use website and up to date. Saved the link on my tablet.

Adam

simple, informative and clear - found what I was looking for straight away. Thank you.

Steve

Really simple to use and all the information was clear with lots of products available. The interest calculator was really handy too. Have bookmarked and will definitely use again.

Marion

Very helpful site for my investment isa

Hannah Gordon

This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Anonymous

If you wish to invest in an ISA this site has it all. A super comprehensive range of simply explained products from all the major companies.

Cristina Iacob

Very knowledgeble company with an extensive range of services, a great website with loads of useful information.

Jessica Morley

Really informative and easy to use site. Information is laid out very clearly and comparisons have all the plus & minuses I'm interested in, so makes me feel like I am making an informed decision. There was also a lot of additional information which would be incredibly helpful to someone completely new to ISAs who wanted to read up on the basics.

Sam H

excellent website, helped me to understand how i can get started with ISA's and helped me to narrow down great deals!

Anonymous

Nice graphics and easy to navigate