A short YouTube video by Ndubuisi 'Andy' Egwim explaining that Individual Savings Accounts (ISAs) act as tax wrappers which shelter investment returns from capital gains tax and dividend tax. The speaker states that capital gains and dividends held inside an ISA are not taxed and cites example rates outside an ISA: 24% for higher-rate taxpayers and 18% for basic-rate taxpayers.
24%
18%
One. When we talk about ISAs, think of ISIS are just tax wrappers. Tax wrappers, Tax protectors. If you invest money in an isa, there's no tax on it. Why am I explaining capital gains tax and dividend is because normally when you get capital gains or dividend, they're supposed to pay a tax on it. That is a regular thing. That's a normal thing. However, with ISAs, which is a tax wrapper, capital gains that you're supposed to pay 24% tax on if you are a HRT, or 18% if you are a basic rate taxpayer, you don't pay any tax, don't pay any tax on your dividends. So your capital gains, your dividends, there is no tax on it. Okay.
