Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Why Every Doctor Needs an ISA for Investing!

3 Mar 2025 · 1 min

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Ndubuisi 'Andy' Egwim explains why doctors should use ISAs to invest tax-free. ISAs shield capital gains and dividends from tax, with an annual allowance of £20,000. Capital gains tax runs up to 20% for higher-rate taxpayers, while savings interest is only tax-free up to £1,000 for basic-rate earners.

Questions this video answers

£20,000 (per tax year, as stated by the speaker).

The speaker says capital gains tax 'has gone from 10% to 18%' and 'as high as 20% for higher rate taxpayers' (phrased as approximate/historical figures).

£1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers (as stated by the speaker).

Chapters

If you use an ISA account, you can invest up to £20,000 tax free. Basically, any capital gains you make, which is basically the value of the investment, go up. You don't have to pay any tax on the gains. Whereas if it's outside a personal, if I start an ISA account, you have to pay capital gains tax, which has gone from 10% to 18% now for basically taxpayers and has gone up to, I think, as high as 20% for higher rate taxpayers. Again, the figures keep changing that we have to keep checking what is the rate. If you use an ISA account, you don't have to worry about capital gains tax or dividend stocks, the same thing. If you use a cash ISA to save your money, you don't have to worry about your interest being taxed or worry about exceeding the savings allowance, which is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers.