Stocks and shares ISA vs nominated account?

�7000 is the maximum annual investment in maxi ISA of wghich �3000 can be cash. You can make as much profit as you can, all free of CGT. ISA are not exempt frm IHT however and must contain stocks listed on a recognised stock exchange (bot AIM) I am not sure abouit dividends because most are reduced by the 20% tax credit, so maybe the taxable element is 10% which you wouldn't pay in an ISA. They are more beneficial therefore for a higher rate tax payer, although the benefit is to build up over the years a tax sheltered fund. Basically ISA profit and dividends are exempt from income tax in an ISA and don't even have to be declared. You would have to work out the admin. charge of an ISA, or what you are losing on the interest rate on a cash ISA and what you are gaining in tax to see if it is worth it. As they say don't let the tail (tax advantage) wag the dog (Investment criteria)Always look at the benefits/risk of the investment and then the tax benefit..