ISA inertia costing Brits millions
With time running out to make full use of this year’s ISA allowance, research by Unbiased.co.uk shows that Brits are wasting over £382m in tax by not putting their savings and investments into a tax-efficient savings account.
This figure has more than doubled over the last year.
Unbiased.co.uk shows that £249m is being paid out in unnecessary tax as a result of savings which do not make use of ISAs, and £133m in tax payments occurred as a result of equities being held outside ISAs.
April 5 is the deadline for individuals to contribute up to their annual limit (£3,000 for cash ISAs; £7,000 for maxi ISAs) towards ISAs for this tax year. After this date, the limits will reset and allow taxpayers to make use of the tax relief once again.
David Elms, chief executive of IFA Promotion, said: “Savers should use the next weeks to make sure they have made full use of their ISA allowance – if you decide not to save into an ISA, you will end up paying more tax. And once you have missed the April 5 deadline, you will lose you tax-free savings allowance for the 2007/ 2008 tax year.”