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If I wanted to cash in my ISA today, what taxes would I have to pay and what percentages would they be?

I think that if the value of the ISA is about £10,600, only then would I have to pay capital gains tax.

But how much capital gains tax and would there be any other tax to pay?

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No taxes at all -- ISAs are free from either income tax or capital gains tax.

  • I thought investment within an ISA was free from Taxes, and that you have to pay taxes when you take the money out of the ISA? – oshirowanen Apr 20 '12 at 14:53
  • Mike, got a supporting reference to back up this short answer? – Chris W. Rea Apr 20 '12 at 15:12
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    I guess this is the best source direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/… – psatek Apr 20 '12 at 15:15
  • In that link it says: If you make gains of more than £10,600 from the sale of shares and certain other assets in the tax year 2011-12 you would normally have to pay Capital Gains Tax. **bold**However, you do not have to pay any Capital Gains Tax on gains from an ISA.**bold** (But losses on ISA investments can't be used to reduce Capital Gains Tax on gains from investments outside the ISA.) So, basically no taxes at all when cashing in your ISA? – oshirowanen Apr 20 '12 at 15:19
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    @oshirowanen: It's pensions you're thinking of where you get tax relief on money invested and then pay tax on income taken from the pension. Investment in ISAs comes from your taxed income, and you don't get any tax relief on it. – Mike Scott Apr 21 '12 at 9:14

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