NISA/ISA

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May 4, 2015 at 5:44 pm #244048
mansoor
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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
May 5, 2015 at 10:19 pm #244251
Tax Tutor
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Are you sure you are not confusing New Individual Savings Accounts (NISA) which are exempt with National Savings Accounts Interest which is taxable?
May 6, 2015 at 2:26 am #244279
mansoor
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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”
May 6, 2015 at 10:25 pm #244455
Tax Tutor
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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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