Tax Exempt Special Savings Account
- Tax Exempt Special Savings Account
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A savings account which generates tax free interest for the investor. The account must be kept open for five years, at which time it must expire. The maximum amount that may be invested in the account is £9,000 in total over the five years. In addition, the maximum amount that may be invested in the first year is £3,000 and in the second to the fifth years £1,800. Where a TESSA has just matured and a second TESSA is opened up within six months of the first TESSA being closed, the maximum investment in the first year is increased to the capital element of the funds in the first TESSA. During the five years, the investor is only permitted to make limited withdrawals from the TESSA, the maximum being 80% of the gross interest for the year. Dresdner Kleinwort Wasserstein financial glossary
Financial and business terms.
2012.
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Tax-Exempt Special Savings Account — In the UK, the Tax Exempt Special Savings Account (TESSA) was one of a number tax free savings accounts. The TESSA was announced by John Major in his only Budget as Chancellor of the Exchequer in 1990 ( a budget for savings ). The TESSA was… … Wikipedia
Tax Exempt Special Savings Account — Tessa A UK savings account with a bank or building society, introduced in January 1991, in which savers were allowed to invest up to £9000 over a five year period with no tax to pay on their interest, provided that special conditions were met.… … Accounting dictionary
Tax Exempt Special Savings Account — Tessa A UK savings account with a bank or building society, introduced in January 1991, in which savers were allowed to invest up to £9000 over a five year period with no tax to pay on their interest, provided that special conditions were met.… … Big dictionary of business and management
tax-exempt special savings account — /tæks ɪgˌzempt ˌspeʃ(ə)l seɪvɪŋz əˌkaυnt/ noun formerly, an account into which money can be placed to earn interest free of tax, provided it is left untouched for five years. Abbreviation TESSA … Dictionary of banking and finance
tax exempt special savings scheme — (TESSA) A special bank or building society savings account that offered tax free interest provided that the account was maintained for a fixed period of five years. TESSAs were replaced by individual savings accounts (ISAs) from 6 April 1999… … Law dictionary
Individual Savings Account — An Individual Savings Account (ISA; pronounced /ˈaɪsə/) is a financial product available to residents in the United Kingdom. It is designed for the purpose of investment and savings with a favourable tax status. Money is contributed from… … Wikipedia
individual savings account — (ISA) A tax exempt savings scheme for individuals introduced in 1999 which replaces tax exempt special savings schemes (TESSAs) and personal equity plans (PEPs). For further information, see the HM Revenue & Customs website … Law dictionary
Individual Savings Account — ISA A savings portfolio for small investors introduced in the UK in 1999. It replaced personal equity plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs); ISAs entitle individuals to save up to £7000 per year free of tax. The savings… … Accounting dictionary
Individual Savings Account — ISA A savings portfolio for small investors introduced in the UK in 1999. It replaced personal equity plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs); ISAs entitle individuals to save up to £7000 per year free of tax. The savings… … Big dictionary of business and management
individual savings account — ( ISA) The new tax exempt savings scheme launched in April 1999 as a replacement for the personal equity plan ( PEP) and tax efficient special savings scheme ( TESSA). ISAs can be used to invest in a very wide range of investments and consist of… … Financial and business terms
