Friday, May 5, 2006
Category:
Finance News
Britons missing out on interest-free savings gave the Treasury an extra £3.56 billion last year, it has been revealed.
Over three quarters of UK savers have failed to take advantage of one of the Chancellor's "few remaining tax breaks", the individual savings account (ISA), according to research from the Portman Building Society.
Brits are paying 22 per cent income tax on interest earned when this could be avoided by simply transferring up to £3,000 into tax-free ISAs.
"Cash ISAs are one of the most efficient, secure and simple ways to save," said Matthew Wyles, Portman's development director, on 22nd March 2006.
"Tax-paying savers are simply pouring money down the drain if they save in ordinary taxable accounts before using their ISA allowance."
Mr Wyles said that "the level of waste is staggering", referring to the 23 million people who are not using their tax-free allowance in the UK.
