advice needed on going over ISA limit

money_saving_addict

Hi,

I have just realised that I am in a bit of a pickle...
I have a shares ISA that I started last year and I have invested the max £7200 this year with selftrade.
However, I also have two tracker ISAs with Legal and General which I opened as long term investments for my childrens' university fees in 10 yrs time, into which i pay £200 a month. Because its direct debit, I kind of overlooked these ISA's (no excuse, I know...) Therefore, so far this year, I have gone over my limit by £1200 - what happens now? Any advice would be gratefully received.

Money Saving Addict

RayWolfe

You should tell Selftrade that you opened in error and tell them to book it as outside the ISA rules. No loss there as you will not have made enough for CGT and if you are a standard tax payer, no problem with dividends. You should also tell the tax man what you are doing and it won't be a problem, assuming you haven't made a habit of this sort of thing.

money_saving_addict

Thanks for your wise words - I shall get straight onto it.