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Cash ISA

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Comments

  • How will I be taxed?
    This tax year (2015/16) each individual has a personal allowance of £10,600, although those aged 75 or over have a slightly higher personal allowance of £10,660.

    There is no tax to pay on savings held in an ISA (Individual Savings Account) and in the current 2015/16 tax year you can save up to £15,240 in an ISA – all in cash if you want to.

    My question is if I deposite cash £15240,in my ISA account , would i have to pay income tax on them as they are above personal allowance which is £10600?
    thanks
  • alexmi
    alexmi Posts: 52 Forumite
    No. Interest on savings in an ISA do not count towards your personal tax allowance. IN any event, it would be the interest that would be taxed (if the money were not in an ISA), not the value of the savings.
  • thanks for the reply, but i am not talking about interest gained on ISA account , but when depositing cash in ISA of amount £15240 which is above persnal allawonce , should this be motioned to inland revenue?
  • alexmi
    alexmi Posts: 52 Forumite
    No. If it is income then obviously it has to be declared for tax purposes, but it is not necessary to do so just for depositing money in an ISA.
  • thanks again
  • alexmi
    alexmi Posts: 52 Forumite
    No problem.
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