Do Isas still offer value to investors?

TAX

Isas are tax efficient rather than tax free, because although they are exempt from capital gains tax and income tax, the underlying investments are not tax free

The simplest, most attractive incentives offer savers on investments are tax free. Isas unfortunately are tax efficient, making them less attractive than tax-free investments. Isas still have their charms - they are free from capital gains tax and income tax. But these attractions are marred by the fact that the underlying investments are not free from tax. And Isas were made even less attractive in April 2004 when the 10% tax credits for equity dividend distributions were abolished. Ostensibly, the question of when to and when not to invest in an Isa is a mute one. If an investor has £7,0...