L3 Investment and property income
This post is sponsored by Notary public London
Banks and Building Societies will collect tax at 20% from interest, leaving the taxpayer to receive interest net. Interest received from NSB investment
Accounts and direct saver accounts is paid gross, as is interest on gilt-edged securities
ISA – 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 £11,520 in the tax year 2013-14, up to £5,760 of which can be saved in cash
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.
Junior ISA – Junior ISAs are new long-term tax favoured savings accounts especially for children. From 1 November 2011 they are available to any child under 18, living in the UK, who does not have a Child Trust Fund (CTF) account. Like ISAs, you can use them to save cash or invest in stocks and shares. You can save up to £3,720 in the tax year 2013-14 into a Junior ISA and you won’t pay any tax on the interest or dividends.
Property Income – Rents receivable on lets in the UK
- Lease premiums (short leases <50yr)
- Rents from fixed caravans/moored houseboats