Investments
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Unless you have to wait until late March 2001 for some special reason, the "Closing down" rush makes little sense:
- There is some anecdotal evidence that the surge in demand has pushed up UK stock market prices around the turn of the tax year. Of course this might not happen in the future.
- The late investor misses out on movement in their chosen investment market during the year. For example, between 31st March 1999 and 31st March 2000, the total return in the UK market, as measured by the FTSE All Share, was just under 10%, although markets can and do decline over a 13 month period.
- A year's worth of freedom from income and capital gains tax within an ISA could be wasted. If you are a higher rate tax payer investing in a high yield corporate bond fund within an ISA, then a years delay could mean losing significant income tax benefits.
- Administrative glitches are considerably more common when new ISA volumes are at their peak.
