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Is interest on interest also taxfree?
Walletwatch
Posts: 1,055 Forumite
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...
May sound a basic question, but wanted to clarify this...
It's always the grass that suffers, irrespective of whether the elephants are fighting or making love !!!
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Comments
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Yep it sure is
Cider Country Solar PV generator: 3.7kWp Enfinity system on unshaded SE (-36deg azimuth) & 45deg roof0 -
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 0 -
Thanx Deemy, knew of the compounding bit, just wanted to confirm on the tax-free compounding!!!It's always the grass that suffers, irrespective of whether the elephants are fighting or making love !!!0
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