With just a few weeks to go until the end of the tax year, new research carried out on behalf of AXA, shows that the majority of UK adults are still not using their Isa allowances. The research also showed misunderstanding on the basics about ISAs.

It found seventy four per cent of adults don’t know what the Isa limit (£15,000) is – including 54 per cent of those who have saved or invested money in an Isa. Over a quarter of people (26 per cent) who have saved or invested in the current tax year through an Isa do not know in which month the tax year ends (April).

On average, those people who have saved or invested through an Isa have only used 38 per cent of their tax-free allowance with just a few weeks to go until the end of tax year (£5,645 of the available £15,000 limit). Twenty two per cent of savers have £1,000 or less in their Isa.

Only 33 per cent are aware that they could invest in stocks and shares via an Isa. People in London have the most in their Isas (£7,297), followed by people in the north of England and Scotland (£6,037 and £6,065). Those in the Midlands (£4,595) have the least.

Adrian Lowcock, head of investing, AXA Self Investor, said: “Households across the UK could be paying billions in needless tax, because they are not using their full ISA limit. While interest rates for savers are so poor, no one needs to lose this money. January is typically a time for families to kick-start their financial planning and put in place those new financial resolutions, so I’d encourage people to consider the options that ISAs offer, investing in both cash and Stocks and Shares, and maximising the use of the limits to help them make their money go as far as possible.”