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Individual Savings Account (ISA)

The income from ISA investments is exempt from income tax. Any capital gains made on investments held in an ISA are exempt from capital gains tax.

Investors are not allowed to invest in more than two separate ISA in each tax year, a cash ISA and a stocks and shares ISA.

Savers are able to subscribe any amounts into a cash ISA or a stocks and shares ISA subject to not exceeding the overall annual investment limit.

Investors are to transfer their investments from a stocks and shares ISA to a cash ISA (or vice versa).

A Help to Buy ISA provides a tax free savings account for first time buyers wishing to save for a home. The scheme will provide a government bonus to each person who has saved into a Help to Buy ISA at the point they use their savings to purchase their first home. For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum bonus of £3,000 on £12,000 of savings. The bonus will be paid in the form of a voucher when the first home is purchased. Conditions apply to the account holder and to the property purchased.

2016/17 and 2015/16:

Overall annual investment limit: £15,240

Junior ISA: £4,080

Help to Buy ISA monthly subscription limit (initial deposit limit £1,000): £200