Brits missing out on tax-free savings
Many Brits will miss out on significant tax free savings this year, according to research from price comparison site moneysupermarket.com.
Only 32% of Brits plan to invest in an ISA this year and only 27% know the allowance for these tax-free investments will be increased from £3,000 to £3,600 per year as of 5 April.
Kevin Mountford, head of savings at moneysupermarket.com, said: “It is disappointing so many Brits won’t take advantage of this excellent savings vehicle. With just a third of people looking to utilise their tax free ISA allowance it looks like many people will miss out.
“Diligent savers can put away a tidy sum if they regularly invest in their ISA – especially now the tax free limit has been increased to £3,600. But I am concerned so few people are aware of this uplift. The extra 20% they can save could really boost gains over the years.”
For those planning to invest in an ISA, cash is the most popular option with 73% saying this is where they will put their money.
Mountford added: “Given the recent market turmoil, it is unsurprising people are leaning towards cash.”