(no subject)

PSA for UK people:

The ISA limits have changed for this tax year (2008-2009). You can invest a total of £7200 in ISAs overall and a maximum of £3600 in a cash ISA (last year the numbers were £7000 and £3000).

What this means in practice (and I only realised last night) is that if you have used the full cash ISA allowance and have an equity (stocks and shares) ISA for the remainder, the amount you can put in the equity ISA has actually gone down from £4000 last year to £3600 this year.

So if, for example, you have been paying £333 / month by Direct Debit or standing order into an equity ISA, you need to reduce that payment to £300 / month effective immediately.

There is a way of getting round this. In a self-select equity ISA, you are freely able to pick which shares and funds your money is invested, and you can buy/sell at will. There are funds that are simple cash funds, and behave just like money in a savings account.

Therefore you could put your entire £7.2k into an 'equity' ISA, but actually have as much or as little of it as you want in risk-free cash funds.

Necessary caveat : Although I work in finance, I am not a financial advisor. Please seek your own advice first!