Don't miss out on this year's tax break, says Fidelity International

London 17 March, 2008:  Fidelity International, the UK’s largest provider of PEPs and ISAs* is urging investors not to miss out on their ISA tax breaks, despite concerns they may have about recent market volatility.

Fidelity is offering self-directed investors four different options to choose from when it comes to making their ISA investment. The most cautious of investors may find the ISA Cash Park option appealing, as it allows them to utilise their full ISA allowance for the year without immediately investing in the stock market**.

Investors can make their ISA investment via four different routes:
• Monthly Saving Plan – Investors can invest a minimum of £50 each month via Direct Debit;
• Phasing – A lump sum invested into the ISA account and gradually drip-fed by Fidelity, into funds of the clients’ choice, in six equal monthly instalments;
• ISA Cash Park – Now available, this new service will allow investors to utilise their £7,000 ISA allowance without immediately committing to any funds, by temporarily holding the allowance in cash;
• Lump sum –For those investors who are perhaps more comfortable with current market conditions, the full £7,000 allowance can be invested as a lump sum.

David Dalton-Brown, Head of Fidelity FundsNetwork™, comments:
“Investors who put off investing this year’s ISA following the choppy market conditions should remember that this year, they have more options than ever to consider when it comes to making an ISA investment. If investors are not keen on parting with a lump sum investment, they can still contribute via a monthly savings plan, phase their investments over a six month period or hold this year’s ISA allowance temporarily in our new ISA Cash Park.

“We urge investors to consider these options to take advantage of this year’s tax allowance and not miss out on the benefits available to them via ISAs.”

The Government has made significant changes to tax year 08/09 which will make ISA investing easier and means that all types of investors are catered for:

Changes to ISA investments for tax year 08/09:

• The Government has confirmed that ISAs will remain indefinitely
• All PEPs will be reclassified as Stocks & Shares ISAs
• The Maxi/Mini ISA distinction has been removed; instead there will be just two types of ISA:
- Stocks & Shares ISA
- Cash ISA (TESSA only ISAs are reclassified as Cash ISAs)
• The subscription limit for ISAs has increased to £7,200 of which up to £3,600 can be invested in a Cash ISA
• You can continue to subscribe to one Stocks & Shares ISA and one Cash ISA, subject to the new overall maximum limits in any tax year
• From 6th April 2008 you will be able to transfer any investments currently held in a Cash ISA into a Stocks & Shares ISA

For more information, investors should visit: www.fidelity.co.uk or call: 0800 414161.

FIL Limited (“FIL”) and its subsidiary companies serve the major markets of the world by providing investment products and services to individuals and institutional investors outside the US. FIL Limited manages a total of £150.9 billion of assets***. Notes to editors:
<sup>*Source: IMA as January 2008
**Cash may only be held in the stocks and share component of an ISA on a temporary basis, for the purpose of investing in qualifying investments. Interest earned will be subject to an HM Revenue and Customs charge of 20%. ISA Cash Park available from 17th March 2008.
***Source: Fidelity as at 31.12.07

FundsNetwork, Fidelity’s online investment supermarket, was launched in June 2000. It offers investors the ability to plan, invest, manage and monitor their investments in one place. FundsNetwork is the only investment supermarket used by both direct investors and financial advisers (and their clients). Investors or their advisers can select from a range of over 1000 funds from 60 fund managers (an overwhelming proportion of UK mutual funds) - and buy them online. The FundsNetwork service is offered and managed by Financial Administration Services Limited. FundsNetworkTM is a trademark of FIL Limited
Any opinions expressed are made at the time of writing and can be subject to change without notification. The value of investments can go down as well as up and an investor may not get back the original amount invested. The Fidelity ISA is offered and managed by Financial Administration Services Limited. The value of tax savings and eligibility to invest in an ISA will depend on individual circumstances and all tax rules may change in the future. Assets as at 31.12.07 are those of FIL Limited. Fidelity, Fidelity International and Pyramid Logo are trademarks of FIL Limited.</sup>