New ISA limits for 2008

GjrBartlett

Primrose,

How do you get a remaining balance of £4200?
The maximum you can save/invest in a ISA from 08/09 is £7200, of this £3600 in cash, leaving £3600 to be invested in equities?

GjrBartlett

dunstonh

Why does Gordon Brown not simplify the whole system and allow us to put our annual allowance wherever we wish?

Because cash ISAs cost more to the treasury than stocks and share ISAs. A £3000 MINI is more expensive to the treasury than 30k in a s&s ISAs. Plus S&S ISAs can help the economy more directly.

Simplification is fine but someone would have to pay for it.

fablad75

Just read today (The Sun, Tue 27 Mar) that Gordon Brown's raised the Cash ISA limit to £3600, starting from 2008.

tom188

Good to see that the sun has finally caught up. It was reported in every other newspaper on the 22nd, the day after the budget announcement.

Gordon_the_Moron

A couple of people said that you will be able to invest £3600 cash and £4200 in stocks and shares, that is NOT correct as the limit is going to be £7200 and £4200 + £3600 = £7800

At present the limit is £7000 (up to £3000 cash) so you can have £3000 cash and £4000 stocks and shares or more than £4000 in shares and less than £3000 cash.

From April 2008 the overall limit is going up from £7000 to £7200, a rise of £200 (I don't know why Wings of Amibtion was so impressed with this if they had gone up with inflation from the start they'd be nearing £8000 by now)

The rise is £200 in the total limit but the proportion of it that can be saved as cash is increasing, therefore instead of being limited to £3000 cash you are limited to £3600 cash BUT if you put more than £3200 in cash you can invest LESS than £4000 in stocks and shares.

Max out your cash allowance at £3600 and you can only put another £3600 in stocks and shares.

Wings_of_Ambition

Gordon_the_Moron wrote: »

(I don't know why Wings of Amibtion was so impressed with this if they had gone up with inflation from the start they'd be nearing £8000 by now)

A pessimist, I see. I was 'impressed' (a slightly strong term, but I shall go with it nevertheless) because its better than nothing. It may only be a small move, but its a move in the right direction. At least he's not REDUCING the ISA limits.