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Savers missing out on tax breaks

September 26, 2007 by admin  
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Almost half of all British adults are knowingly paying too much tax, but refuse to do anything about it, Britannia has claimed.

New research from building society revealed that 48 per cent of UK adults have never had an ISA account and are failing to make the most of tax free savings.

Of those without an account, Britannia was shocked to discover that as many as 30 per cent did not even know what an ISA is.

“Our research reveals that there are many misconceptions about ISAs and people just don’t understand how they work,” said Neville Richardson, Britannia Group chief executive.

“It’s a shame that many of those who are saving are unnecessarily being taxed twice – firstly on their income and then again on their savings. This means 48 per cent of adults are financially worse off by missing out on tax free returns on their savings.”

Customers can open an ISA at any point during the year and are allowed to save £3,000 in cash and invest £4,000 into stocks and shares every year without paying any tax.

As of the beginning of the next financial year (2008/09), adults will be able to save up to £3,600 in tax-free cash and £7,200 in tax-free stocks and shares every year.

Tags: savers, anything, Britannia Group, neville, percentage, half, shame, income

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