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Do I pay tax on an ISA?

You will not have to pay any UK Income Tax or Capital Gains Tax on your ISA savings, and you do not have to mention your ISA on your tax return.

Unlike the income from a pension (apart from the 25% tax-free cash), withdrawals from an ISA do not count as taxable income. On the other hand, you do not receive tax relief on your payments into an ISA. In other words, ISA contributions come from taxed income but withdrawals are tax-free, while pension contributions effectively come from untaxed income but withdrawals may be taxed.

Find out more about Stocks and Shares ISA.