FREE TOOL · 2024/25

ISA Tax Savings Calculator

How much does a Stocks & Shares ISA actually save you? Enter your income, dividends and gains to see the dividend tax and capital gains tax an ISA shelters - all of it.

£
£
£
Tax saved with an ISA (per year)
£1,118.75
that\'s the tax you\'d pay on the same investments in a taxable account (GIA).
Dividend tax (in a GIA)£218.75
Capital gains tax (in a GIA)£900
Total tax saved in an ISA£1,118.75
Inside an ISA you pay£0
Dividend allowance used: £500 · CGT allowance used: £3,000 · ISA allowance: £20,000/yr

Estimate for 2024/25 England/Wales/NI rates. Assumes gains are on shares/funds (18% / 24%). Not tax advice - confirm with HMRC or an adviser.

RELATED GUIDECapital gains tax in Europe: the complete comparisonRates, allowances and tax wrappers across the UK, Germany, France, Spain and Italy - and which is cheapest.

Frequently asked

How much tax does an ISA save?

Everything inside a Stocks & Shares ISA is completely tax-free: no tax on dividends, no capital gains tax, and no need to report anything to HMRC. Your saving equals the dividend tax and capital gains tax you would otherwise pay on the same investments in a taxable account - which this calculator works out for you.

What is a Stocks & Shares ISA?

An Individual Savings Account (ISA) is a UK tax wrapper. You can invest up to £20,000 per tax year, and any growth, dividends or capital gains inside it are free of UK income tax and capital gains tax - for life. There is no tax on withdrawals either.

ISA vs GIA (general investment account) - what's the difference?

A GIA (or general/taxable brokerage account) has no contribution limit but is fully taxable: dividends above £500 are taxed at 8.75%-39.35%, and gains above the £3,000 allowance at 18% or 24%. An ISA shelters all of that. For most long-term investors, filling the ISA first is the tax-efficient choice.

What is the ISA allowance for 2024/25?

The annual ISA allowance is £20,000 across all your ISAs (Stocks & Shares, Cash, Lifetime, Innovative Finance). It resets each tax year on 6 April and cannot be carried forward - use it or lose it.

Do I pay capital gains tax or dividend tax in an ISA?

No. Both are zero inside an ISA. Outside an ISA (in a GIA), the dividend allowance is just £500 and the capital gains allowance £3,000 - both cut sharply in recent years - so more investors now benefit from sheltering in an ISA.

Is this financial advice?

No - it is an estimate for 2024/25 English/Welsh/NI rates to help you compare. Actual tax depends on your full circumstances. Confirm with HMRC or a financial adviser.