Individual savings account

 

Home
Site Map
Add Term
Search
About Us
Contributors

Individual Savings Account

Tax-free savings plans that allow the individual to invest in cash, stocks or shares or insurance. 

Individual savings account

A tax-favoured savings account introduced on 6th April 1999 which replaced PEPs and TESSAs. ISAs are not an investment in their own right. They are a tax-free wrapper in which you can shelter investments.People over the age of 18 living in the UK can invest a maximum of £7,000 per year in each tax year. 16 and 17 year olds can invest up to £3,000 in a mini cash ISA.Investment may be made in three components: equities, cash and life assurance. There are strict limits on how much you can put in each component, and the limits depend in part on whether you use a 'maxi ISA' or a number of mini ISAs.Until 5th April 2004 ISAs benefit from a 10% tax credit on UK equities. Stock and share investments which can be held in an ISA include unit trusts, open ended investment companies (OEICs), investment trusts, ordinary shares, preference shares and fixed interest corporate bonds.PEPs in existence at 6th April 1999 may continue to be held outside an ISA with the same tax advantages. TESSAs in existence at 6th April 1999 are allowed to run their full five year term.Income from ISA investments is tax free and you don't have to report it on your tax return. Capital gains are also exempt from CGT.ISA plans are sold by stockbrokers, IFAs, fund managers, banks and other authorised financial institutions. You can buy a plan and take advice on what to put in it, or you can have a 'self-select' ISA and make your own decisions.



Similar Matches

American Association of Individual Investors

American Association of Individual Investors

An association based in Chicago whose purpose is to provide information and education regarding stocks, mutual funds and bonds etc to individual investors.


Individual Investor Express Delivery Service

Individual Investor Express Delivery Service

A service for individual investors which puts their orders at the head of any Tandem Systems Queue. (CMS, SuperDot & PSS)


Individual Retirement Account (IRA)

Individual Retirement Account (IRA)

A retirement account that may be established by an employed person. IRA contributions are tax deductible according to certain guidelines, and the gains in the account are tax-deferred.


Individual retirement account

Individual retirement account

In the US, a tax-deferred retirement savings account which may be set up by people in employment. IRA contributions are tax deductible irrespective of income if neither spouse is a member of a qualified plan or trust. A person who is a member of a qualified plan may still deduct IRA contributions providing adjusted gross income is below a certain level. Although savings grow tax free over the term of the plan, when pension benefits are taken, they will be liable to tax.


Lifelong individual savings account

Lifelong individual savings account

See 'individual savings account'.


Further Suggestions

Individual Turnover Report
IRA (individual Retirement Account)
American Association of Individual Investors (AAII)
Individual tax return


 
All rights Reserved. Do not copy without permission.