Dividends within ISAs are no longer tax free as we know.

My Question Is does the 10% Divi deduction In an ISA (which Is classed as earned Income outside) also count as earned Income?

I will go to the IR If no won knows the answer, but thought I would ask on here First.

It is no point asking the IR because they don't know or care. They just pass you back to your broker.

All dividend is taxed at source. When Peps and Isas were introduced they were completely tax free, your broker could claim back tax paid on dividend.

Gordon Brown decided that he'd put a stop to this and now yes tax is paid on dividend in Peps.

The way the market is storming ahead it won't be long before he starts taxing capital gains in Peps and Isas