I am under the impression that shares in an ISA are free of tax on booth gains and dividends. Someone might put me right but thats my understanding after a long winded discussion on another BB a while back.
ISAs (Individual Savings Accounts) ISAs are tax favoured savings and investment accounts. You can use them to save cash, or invest in stocks and shares. The maximum you can put in to an ISA is £15,000 in the tax year 2014 to 2015, and this sum can be split as you wish between one cash ISA and one stocks and shares ISA. You don't pay any tax on the interest or dividends you receive from an ISA and any profits from investments are free of Capital Gains Tax. But this does mean that you can't use losses on ISA investments to reduce Capital Gains Tax on profits from investments outside the ISA.
So why is 10% deducted even if it says "You don't pay any tax on the interest or dividends you receive from an ISA..."?
If so, is 10% the max. that can be deducted no matter the payment??
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