ACCA Applied Skills · Taxation (UK) · The overall function and purpose of taxation in a modern economy
Which of the following is the overall annual investment limit for an individual savings account (ISA) under the tax rates and allowances given for TX-UK (Finance Act 2025)?
The overall ISA investment limit given in the TX-UK tax tables for Finance Act 2025 is £20,000. This is the total an individual may invest across ISAs in a tax year. The figure of £7,500 relates to rent-a-room relief, not ISAs.
- A£7,500
- B£20,000Correct
- C£12,570
- D£10,000
Explanation
The TX-UK tax tables give the overall ISA investment limit as £20,000 per tax year. £7,500 is the rent-a-room limit, so it is a different relief and wrong here.
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