Total newbie. No idea about money…that’s why I signed up here and promote IFG to others too.
I do not understand what the ISA option does on the Wahed Invest website.
They state you can put £20K into ISA per year. Some questions about that:
In simple terms (as I am totally financially illiterate ) does this mean if I put £10K into an account now in Oct 2020, I can put another 10K in at any stage in the next 12 months and still reap the benefit of the ISA i.e. I don’t have to put in the full £20K now do I.
In terms of the benefit of the ISA, does it mean what ever ‘profit’ it makes over a 12 month period, I do not have to pay tax on it (as long as I do not invest more than £20K).
If I put £30K into the ISA during the next 12 months, I would have to pay tax on the profit I make on that extra £10K I put in? So it’s better to wait until the following year and then put it into the new £20K allowance I will get for ISA investments?
Your ISA allowance permits you to contribute a maximum of £20,000 per tax year (6th April to the following 5th April). Then on the 6th April, your allowance renews. To confirm, if you add more than the annual allowance, HMRC usually instructs your ISA provider to return the excess sum. If you open two of the same ISAs in the same tax year, they will ask you to close one down.
Any income or gains made within your ISA is tax fee.
You may find the recording of a webinar I hosted earlier this year regarding ISAs helpful.
) does this mean if I put £10K into an account now in Oct 2020, I can put another 10K in at any stage in the next 12 months and still reap the benefit of the ISA i.e. I don’t have to put in the full £20K now do I.