9. Taxation of ISAs

Question 1

Types of ISAs

Answer 1

Cash

Stocks and Shares

Innovative Finance

Help to Buy

Lifetime

Junior

Question 2

Innovative Finance

Answer 2

For loans on P2P lending platforms

Question 3

Help to Buy

Answer 3

First time home buyers

Annual investment limit of £2,400 (initial investment of £1,200)

Gov will pay bonus of 25% of amount invested up to £3,000

Question 4

Lifetime

Answer 4

Adults under 40

Annual investment limit of £4,000

Government adds bonus of 25% to amount invested

Question 5

Junior

Answer 5

Children under age 18 born after 2 January 2011 or who not eligible for trust fund ISA

Max investment of £4,260 per year (can be between JISA or SandS JISA)

Can be opened by anyone with parental responsibilities or child themselves at 16

No access to proceeds until 18th birthday

Any income generated is not taxable on the parent

Question 6

ISA investment limit

Answer 6

£20,000

Can be split between various ISA (only allowed one type of each ISA)

Can take out and replace in same year without affecting annual limit