If your ISA is over 3,000, is that amount taxed?

jackdaw

My ISA has accumulated interest so that it's now over £3,000 - is that interest taxed or tax-free like the other 3,000?

nearlyrich

As long as it's in the ISA wrapper it is tax free including the interest added to the original investment.

jimclark1967

jackdaw wrote:

My ISA has accumulated interest so that it's now over £3,000 - is that interest taxed or tax-free like the other 3,000?

The £3,000 is just the limit on how much you yourself can put into the ISA wrapper each tax year. It's now possible to have well over £20k in a cash ISA all earning interest tax free :beer:

JC

meanmachine_2

Yes, tax free for the time being.

But ISAs are under threat from guess who - Gordon Brown. I think there's a risk they end in 2008 - at which point he'll be able to get his hands on all that lovely loot of ours.

Grrrr.

thor

It's 2010 isn't it? Anyway when ISAs were invented they were only supposed to allow £3K for the cash element for 2 or 3 years before dropping down to £1K(so even then a small amount would have been allowed to remain tax free) but GB has extended this once if not twice each time the tax free period was due to finish. At £3K per annum Cash ISAs are more generous than the Tessas they replaced(9K over 5 years) and I think that the government will keep it that way.

hansi

meanmachine wrote:

Yes, tax free for the time being.

But ISAs are under threat from guess who - Gordon Brown. I think there's a risk they end in 2008 - at which point he'll be able to get his hands on all that lovely loot of ours.

Grrrr.

not me, I'm gonna spend it all and then go on benefits like some of the scroungers we read about

trevored

hansi wrote:

not me, I'm gonna spend it all and then go on benefits like some of the scroungers we read about

You could offer to 'lend' it to the Labour Party & maybe you too would be offered a seat in the House of Lords!!!!

ManAtHome

But for £30k or so you'd only get Royal Wiper of the GB(H) !!!!!!, would need at least double that for Passer Of The Paper to the Royal Wiper of the... If you hit a million or more maybe Supplier of the Paper to the Requisitions Officer of the Passer of the Paper...

Perhaps we could make a few quid by giving Mugabe courses.?

isasmurf

I think the question has been answered and we are going off-topic, so this thread is now closed.