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‘Tax map will stop Isa allowance being lost’

Fidelity Fundsnetwork says advisers must not overlook the importance of this year’s Isa allowance in the recession- ary climate.

Speaking at the firm’s investment forum in London last week, director of tax and trust planning Paul Kennedy told advisers it may be necessary to make a stronger case for Isa investment in 2009.

He said: “We are in a credit crunch, there is a recession and a lack of new money. My fear is that the importance of the Isa allowance is going to get lost on the public at this time.”

According to Kennedy, advisers should map the taxation of other wrappers against the lack of taxation in Isas.

He said: “If you are a higher-rate taxpayer, returns can be in the order of 70 to 100 per cent more. If you are basic rate, it can be 25 to 60 per cent more. It is a huge difference.”

Kennedy suggested advisers should consider shifting money from existing investments to Isas to avoid losing the allowance.

He said: “If the client has new money and is happy to invest, great. If they have new money but do not want to invest now, let us park the money in cash so we do not lose the new allowance.


Big in Japan

We turned bullish on Japanese equities in the second half of 2008 and we remain so today.

Means to an end

I have got a bee in my bonnet about this means-testing malarkey. The DWP has published its report on the interaction of private pensions and means-testing – it is now time to move on.


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