Newbie to isas

bambi1984

Please can you just clear it up for me. Are you only allowed 1 isa ? and say your over the taxable amount how much do u get taxed is it on the savings are is it on the intrest please clear this up for me for the future thank you :j

Lokolo

You can have any number of ISAs as you want. However you can only contribute new money to 1 ISA each tax year.

The maximum you can put in a Cash ISA each tax year is £5,100.

You pay no tax on interest in a cash ISA, no matter how much it is.

bambi1984

can i ask lokolo what if there was more than £5,100 in the isa dont you start paying tax and how much is per 1 thousand is it the intrest you get taxed on

bambi1984

reading again is 5100 the max you can put in isa no more my mistake best regards

Lokolo

bambi1984 wrote: »

reading again is 5100 the max you can put in isa no more my mistake best regards

£5,100 each tax year.

So if you have an ISA this tax year, you can put £5,100 in. Then on April 6th you can put another £5,100 in. Then the year after another £5,100 in.

You can have more than the annual allowance as you can put money in over a number of years. You just cannot put more than £5,100 in each tax year.

bambi1984

thanks for your helpful post thats cleared everything up so £5100 no more in a tax year but can do it for many years ie £5100 a tax year do u not get taxed in anyway on intrest ?

Lokolo

bambi1984 wrote: »

thanks for your helpful post thats cleared everything up so £5100 no more in a tax year but can do it for many years ie £5100 a tax year do u not get taxed in anyway on intrest ?

Nope! Nothing.

So as I said, £5,100 a year. After 5 years you can have £25,000 in ISAs and all of it having tax free interest.

bambi1984

lokolo roughly i know you cant give an exact amount but say you get 4% intrest how much is that on top of the 5100 thanks alot for help

Lokolo

bambi1984 wrote: »

lokolo roughly i know you cant give an exact amount but say you get 4% intrest how much is that on top of the 5100 thanks alot for help

4% of £5,100 is £204.

You can have interest stay in the account and it doesn't count towards your alllowance.

So if you put £5,100 into an account which gives 4%. After 1 year you will have £5,100+£204, so £5,304.

Azrael_1701

The annual full ISA allowance will increase from £10,200 to £10,680 for the next tax year.

This puts the Cash ISA allowance up to £5,340.

ses6jwg

Azrael_1701 wrote: »

The annual full ISA allowance will increase from £10,200 to £10,680 for the next tax year.

This puts the Cash ISA allowance up to £5,340.

Hi there,

Do you have a source for this?