Savings, Investments, and Dividends

Individual Savings Accounts (ISAs) let you save or invest up to £20,000 each tax year completely free from income tax and capital gains tax. You don't pay tax on interest, dividends, or investment growth, and you don't need to report ISAs on your tax return. There are four typ...

6 min read

Junior ISAs and Child Trust Funds are tax-free savings accounts designed to help children build up money for their future. Both schemes allow you to save up to £9,000 each year without paying any tax on the growth, and the money belongs to the child, who can access it when the...

7 min read

A Lifetime ISA is a tax-advantaged savings account that helps you save for your first home or retirement, with the government adding a 25% bonus to your contributions. You can save up to £4,000 per year and receive up to £1,000 in government bonuses annually, but strict withdrawal rules apply if...

4 min read

Dividends are payments you receive when you own shares in a company, and most people can earn some dividend income without paying tax. However, once your dividends exceed the tax-free allowances, you'll need to pay tax at rates that depend on your Income Tax band and may need to report this income...

4 min read

Gains from life insurance policies can trigger a tax charge known as a chargeable event. While the insurance company often deducts basic rate tax automatically, higher and additional rate taxpayers may face further liability. This article explains when gains become taxable, ho...

5 min read

Peer-to-peer (P2P) lending has become a popular way to earn interest by lending money directly to individuals or businesses through online platforms. If you invest through P2P lending, you need to understand how the interest you earn is taxed and what relief is available if borrowers fail to repay....

5 min read

Most people can now earn interest on their savings without paying tax, thanks to generous allowances that apply on top of your Personal Allowance. Understanding these allowances — particularly the Personal Savings Allowance and the starting rate for savings — helps you know whether you'll owe tax...

4 min read