Investments that pay interest (ie government and corporate bonds), or rental income (such as some property funds) provide 100% tax-free income if held within an ISA and therefore offer tax benefits for everyone.
All individuals are eligible for a £1,000 tax-free Dividend Allowance. The dividend allowance is in addition to your personal allowance, which is the amount you can earn each tax year before you have to start paying tax. From 6 April 6 2024, it is being halved again, going down to £500.
Dividends received by pension funds or received on shares within an ISA are tax free and won’t impact your dividend allowance.
Also, any profit you make when selling investments in your stocks and shares ISA is free of Capital Gains Tax.
Any losses made on your investments in your stocks and shares ISAs can’t be used to offset capital gains on your other investments.