Legal & General Index Tracking ISA

23rdian

Any advice is appriciated...

Just opened a Legal & General Index Tracking ISA as per
http://www.legalandgeneral.com/investments/isas/index-tracking-isa/
(£500 lump sum and £50 per month regular payment)

Terms & Conditions state:
I apply to subscribe to a Legal & General stocks and shares ISA for the tax year 2008/2009 and each subsequent tax year unless I instruct you otherwise.

Now here is where I think I made a boo-boo...

1. I am also looking to buy individual shares soon that would ideally have the tax free status.

2. Am I right in thinking that - If one £50 payment is taken in the 2009/2010 tax year then I am limited to using Legal & General as the provider for this new period?
3. Do Legal & General offer any suitable products for doing (1)? Or should I instead avoid making any £50 payments and subscribe to a more suitable provider next year to maximise the allowances?

Hope this makes sense.

dunstonh

2. Am I right in thinking that - If one £50 payment is taken in the 2009/2010 tax year then I am limited to using Legal & General as the provider for this new period?

Yes. Unless you transfer it to another ISA manager.

3. Do Legal & General offer any suitable products for doing (1)? Or should I instead avoid making any £50 payments and subscribe to a more suitable provider next year to maximise the allowances?

You should use a self select ISA.

However, it depends on your tax status and how much is involved as shares are not fully tax free in an ISA. If you are a basic rate taxpayer (not close to HRT) under 65 and the amounts are not going to be very big then there is little point using your ISA allowance in the short term. However, long term, if you intend to build up large sums there will be. Plus, you can always "bed & ISA" in future years.

23rdian

Thanks for the reply,

Never heard of the "bed & ISA" before - odd term but interesting

Had the paperwork come through today and is headed "LEGAL & GENERAL LUMP SUM ISA" - no mention of any monthly payments.

So assuming I allow none to be taken, can I just subscribe to a new self select ISA manager in the 2009/2010 tax year?