Getting started in investing: Part eight

8. To ISA Or Not?

Earlier we said that whatever we plump for as a first investment, we'll probably want to shelter it from the taxman by using an ISA. So let's spend a little time looking at ISAs.

Double the protection An ISA protects you from both income tax and capital gains tax (CGT).

The income tax benefits are not what they were. Basic rate taxpayers don't have to pay tax on dividends, so you only benefit if you're a higher-rate taxpayer.