Cash ISA or Shares ISA ?

I already have a cash Isa but am looking to build up an investment portfolio. I understand how ISA%26#039;S work and the basics of shares and investments. However I cant get my head around Shares ISA%26#039;s. I.E. if I place 锟?000 in a Shares ISA account to be invested in medium risk equities, what is the difference than investing normally in the same equities. Is it just that when I sold the shares I would not pay any Income or CGT tax on the Shares ISA?

Cash ISA or Shares ISA ?loan forgiveness

Initially there was a tax advantage but that seems to have gone because dividends are now taxed just like a normally share account. However you would be exempt from Capital Gains tax when you sold them. That seems to be the only advantage.

Cash ISA or Shares ISA ? loan

Within an ISA you can receive income tax free and on sale there is no cgt to pay. Cash ISA%26#039;s normally give you a stable return but stocks and shares long term can give better returns. Just look at the property funds and how well they have been doing double figures in last few years. Downnow to realistic 8%. Also should consider fund of fund/manager of manager ISAs. Hope this helps|||you earn peanuts from isas and savings. invest your money yourself by buying shares in your name. make sure you sign up to reinvest your dividends. you will soon see your money grow faster than any isa|||There are currently two types of ISA - maxi and mini and there are two different types of investment you can choose from. These are:

Cash ISAs (which effectively replaced TESSAs).Share ISAs (which effectively replaced PEPs).

In any tax year you can have one maxi ISA or up to two mini ISAs. If you pick mini ISAs, you can choose a different provider for each part of the equation - cash or shares. You cannot have a maxi ISA and a mini ISA in the same tax year.

Under current legislation you can invest up to 锟?000 in a maxi ISA or alternatively up to 锟?,000 in a mini share ISA and 锟?,000 in a mini cash ISA, remember that the total investment cannot exceed 锟?,000.

Returns from ISA savings are free of income tax and capital gains tax and do not have to be declared in your tax returns. A recent change to taxation has meant that from 6 April 2004 all equity dividend income stopped receiving the 10% tax credit. This change was retrospective so that all existing ISA and PEP investments will be similarly affected.So really way better than owning direct shares/funds.Also fund managers hold a wide range of stocks so will reduce your exposure.