Hi.
i just did a questions in kaplan where it said that NISA Investments were not exempt but NISA Savings are exempt.
would it be possible to explain these in 2/3 lines please....i have read the text but cant seem to understand,
thank u
Ask the Tutor ACCA TX-UK
NISA/ISA
Are you sure you are not confusing New Individual Savings Accounts (NISA) which are exempt with National Savings Accounts Interest which is taxable?
here is the question:
Joe made the following investments during 14/15
i. 400 in shares in the company he works for
ii. 1000 in a New Individual Savings Account
iii. 800 in a National Savings and Investments Investment Account
iv. 500 purchasing a National Savings and Investment Cert
which of the above will generate income which is exempt from income tax?
a. all of the above
b. i,ii,iv
c. ii,iii,iv
d. i only
answer is b.
"Income from NS&I Investment account (interest) is subject to income tax"
None of those answers are correct!
There are 2 sources of exempt income, ii and iv, the NISA and the NSI Certificates.
i and iii are both taxable being dividends received and NSI Investment Account interest
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