Investment ISAs and Peps
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ISA Mini Guide here
ISAs (Individual Savings Accounts) and PEPs (Personal Equity Plans) are merely "tax wrappers" for investments, PEPs being
the forerunners of ISAs. Such investments are treated favourably for tax
purposes.
They may include various
investment products. The classic "ISA" is a unitised fund such as a
unit trust or OEIC. The maximum which may be invested in an ISA in a
single tax year is £7,200 of which up to £3,000 may be Cash ISA , and the
balance is available for an investment ISA.
Taxation: There is no explicit taxation of ISAs and PEPs.
However, the 10% tax credit on dividends received by investment ISA funds has,
since 2004, ceased to be reclaimable by the funds.
What you will get back depends on how your investment grows. The value of
the investment is determined by the value of the units, the price of which can fall as well as rise.
You should remember that past performance is not necessarily a guide to future returns.
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