Invest in cash isa today, or wait for Budget 2009 for new investment limits?

garyskuse

Now the new tax year is with us, should I invest my £3,600 today, or wait until 22nd April for the Chancellors 2009 Budget? I'm thinking the investment limits may get raised - possibly to £6,000 for cash isas.

datostar

I shouldn't think subscribing £3,600 now would do any harm at all. If the limit is increased in the Budget on 22 April then you'll be able to top up to the new limit surely?

brewerdave

Can't see the limit being raised - Messrs Darling and Brown want us to spend more so they are not going to incentivise more saving surely?

Funkyfreddy

brewerdave wrote: »

Can't see the limit being raised - Messrs Darling and Brown want us to spend more so they are not going to incentivise more saving surely?

I wouldn't be surprised to see the allowance raised and masked and some great gift in offering additonal "tax free" earnings on your savings - yeh right :rotfl:

Little *real* value though with rates as they are compared to this time last year together with value of the pound etc.

Rgds
FF

PS: Are you a brewer :beer:

dunstonh

The ISA providers wont be happy with a retrospective ISA increase. Software re-writes that cant be done overnight. New literature requiring printing (and old ones trashed). The early ISA contributors coming back to put the extra tiny amount in. They will also most likely be the ones wanting to do it the next day as well when the systems are unable to be updated to allow it.

In the scheme of things, it just greats a bigger liability to the taxpayer further down the road if they increase the ISA limit with very little gain to savers now.

brewerdave

Funkyfreddy - yes I was a brewer - unfortunately so many breweries have closed now that I've had to take early retirement (after 2 redundancies!!)

Aegis

garyskuse wrote: »

Now the new tax year is with us, should I invest my £3,600 today, or wait until 22nd April for the Chancellors 2009 Budget? I'm thinking the investment limits may get raised - possibly to £6,000 for cash isas.

I have to ask, where is this prediction of yours coming from? For years the limit was £3000 cash and up to £7000 stocks and shares. The limit finally went up last year to £3600 and £7200. A sudden rise to £6000 cash announced after the start of the new tax year would be unexpected to say the least!

Lokolo

And even if it went up, surely putting £3,600 in now won't stop you from then on April 22nd to put the other £2,400 of your '£6,000' limit...?

Aegis

Lokolo wrote: »

And even if it went up, surely putting £3,600 in now won't stop you from then on April 22nd to put the other £2,400 of your '£6,000' limit...?

It might feasibly if you'd applied for a fixed term ISA with a lump sum of less than the overall limit, but I would imagine that Darling would have to make allowances for an extra ISA if he did something that stupid!

garyskuse

garyskuse wrote: »

Now the new tax year is with us, should I invest my £3,600 today, or wait until 22nd April for the Chancellors 2009 Budget? I'm thinking the investment limits may get raised - possibly to £6,000 for cash isas.

KPMG are predicting a £6,000 figure as a possibility on their website in the 2009 Budget section - sorry I can't post the hyperlink, new users like me can't post hyperlinks. try adding www. to kpmg.eu/budget/13714.htm.

RayWolfe

There is lots of speculation about an increase. Because of the points that Dunstonh makes above, it will probably be an announcement to take effect in 2010/11.