ISA Calculator

Types of ISA

• Cash ISA: Tax-free savings account
• Stocks & Shares ISA: Tax-free investments
• Lifetime ISA: For first home or retirement (18-39)
• Innovative Finance ISA: Peer-to-peer lending

ISA Allowances 2024-25

• Total ISA allowance: £20,000
• Lifetime ISA: £4,000 (counts towards £20k)
• Junior ISA: £9,000
• Can split across different ISA types

Tax Benefits

• No income tax on interest
• No capital gains tax on growth
• No dividend tax on distributions
• No reporting required on tax returns

ISA Transfer Rules

• Can transfer between ISA providers
• Can transfer to different ISA types
• Previous years transfers dont affect current allowance
• Current year transfers must be in full

Lifetime ISA (LISA)

• 25% government bonus on contributions
• Max contribution: £4,000/year
• For first home (up to £450k) or retirement at 60
• 25% penalty for other withdrawals

Investment Strategy

• Max out ISA before using taxable accounts
• Use S&S ISA for long-term investing
• Cash ISA for emergency fund
• Consider global index funds for diversification