ISA's

[Pondlife]

'Tis true - only reason to open cash isa is if you're nailed for higher rate tax.

Eh, how does that help?

ISAs deposits are with money you've already paid the tax on. It's only the growth that's tax free not the investment.

 

[sunnysan]

Death

Death

If you die, does the ISA become taxable?

 

[crack_ho]

If you die, does the ISA become taxable?

It will be added to the estate and subject to IHT.
The benefactor will lose your tax wrapper so any future earnings from it after your death will be subject to Income Tax or CGT on sale if it is a Share ISA.

"It's only fair"

 

[ace00]

Eh, how does that help?

ISAs deposits are with money you've already paid the tax on. It's only the growth that's tax free not the investment.

Think you answered your own question there.

Bank account paying 7%, returns 4.2% for a higher rate payer, 5.6% for basic rate. Cash ISA, round about 5.6%.

 

[Pondlife]

Think you answered your own question there.

Bank account paying 7%, returns 4.2% for a higher rate payer, 5.6% for basic rate. Cash ISA, round about 5.6%.

But why not use your full allowance?