Oops - over limit

Peerob

earlier this year 2009/2010 i took out a £3600 cash isa.

I forgot i had done it and now i have taken a new stocks and shares isa with Fidelity which uses this years allowance (China Special Situations) which launches next week.

It was my mistake - what are my options? I dont intend to but what happens if i do nothng?

Lokolo

Are you saying you bought £7,200 worth of the fund?

You have put £3,600 in Cash ISA which means you can still put another £3,600 in S&S ISA....

anamenottaken

Peerob wrote: »

earlier this year 2009/2010 i took out a £3600 cash isa.

I forgot i had done it and now i have taken a new stocks and shares isa with Fidelity which uses this years allowance (China Special Situations) which launches next week.

It was my mistake - what are my options? I dont intend to but what happens if i do nothng?

I'm probably dim but, if it "launches next week", isn't that next year's ISA?

Lokolo

anamenottaken wrote: »

I'm probably dim but, if it "launches next week", isn't that next year's ISA?

I suspect the money is in his S&S ISA though and that the money will be used to buy the funds next week.

juicyjude

If your over 50 isnt the allowance more anyway for this year09/10

Peerob

i am not over 50

i have £3600 in cash isa for 2009/2010 with Santander

i have just put £7,200 in a fund about to be launched next week - it is in a Cash park at present using this years 2009/2010 allowance. It is in Fidelity China Special Situations fund. This way i get the opening offer of £1.00 per share and no charges. I cant just transfer to 2010/2011.

Question is what happens if you overspend your allowance for a tax year.

Newbie2saving

You are taxed as per other accounts if you go over the limit.

I made an error with my S&S ISA for this year with the same fund. I contacted H-L and they recrified the figure. In the prospectus the min investment stated £2000, whereas H-L have a lower min investment. I originally opted for £2000, then reduced it to £1200 (via a phonecall) and opened another 2 funds with the remaining £2400 for 2009/2010.

You could try and phone to rectify and leave excess cash in cash park until next tax yr and then invest in other funds???

Good luck.

yorkiebar

Contact Fidelity, explain the situation and get them to return £3600 of the cash float to you before it's invested.

masonic

Peerob wrote: »

Question is what happens if you overspend your allowance for a tax year.

In the first instance you would normally just get a letter from HMRC telling you not to do it again. At this stage, there won't be anything you can do to prevent the oversubscription, so if you want to do anything about it, contacting HMRC for advice would seem like the best move.