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  • FIRST POST
    • Walletwatch
    • By Walletwatch 23rd Dec 04, 5:17 PM
    • 1,019Posts
    • 584Thanks
    Walletwatch
    Is interest on interest also taxfree?
    • #1
    • 23rd Dec 04, 5:17 PM
    Is interest on interest also taxfree? 23rd Dec 04 at 5:17 PM
    Meaning can I carry forward the interest that I get on the first year of my ISA, and have the interest on this total amount (3000 + x of interest) as tax free next year and so on?

    May sound a basic question, but wanted to clarify this...
Page 1
    • sly_dog_jonah
    • By sly_dog_jonah 23rd Dec 04, 6:21 PM
    • 1,005 Posts
    • 1,211 Thanks
    sly_dog_jonah
    • #2
    • 23rd Dec 04, 6:21 PM
    Re: Is interest on interest also taxfree?
    • #2
    • 23rd Dec 04, 6:21 PM
    Yep it sure is
  • deemy2004
    • #3
    • 23rd Dec 04, 8:03 PM
    Re: Is interest on interest also taxfree?
    • #3
    • 23rd Dec 04, 8:03 PM
    Meaning can I carry forward the interest that I get on the first year of my ISA, and have the interest on this total amount (3000 + x of interest) as tax free next year and so on?

    May sound a basic question, but wanted to clarify this...
    Yep - Interest earned is tax free, gets added to your capital then carried forward to the next year where interest applied to the new total is also tax free, gets added and carried to the next year where................

    That's the magic of compounding

    • Walletwatch
    • By Walletwatch 24th Dec 04, 1:34 AM
    • 1,019 Posts
    • 584 Thanks
    Walletwatch
    • #4
    • 24th Dec 04, 1:34 AM
    Re: Is interest on interest also taxfree?
    • #4
    • 24th Dec 04, 1:34 AM
    Thanx Deemy, knew of the compounding bit, just wanted to confirm on the tax-free compounding!!!
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