Britons lose £403 a year by failing to put their savings and investments into tax-free savings accounts such as ISAs, new research suggests.
A survey by financial adviser search engine unbiased.co.uk found that Brits collectively squander £376 million by not utilising their cash ISA allowance, while a further £27 million is wasted by not taking advantage of an ISA when investing in stocks and shares .
Karen Barrett, the company’s chief executive of unbiased.co.uk, says: “Even if you only have a little to put aside, saving a small amount regularly each month in a tax-efficient savings account can make a real difference over the long term.”
“It is important for people to ensure they are making their savings work as hard as possible. By putting some basic tax planning in place, such as investing in an ISA rather than a standard savings account, they could optimise their savings without having to do very much.”
“Each new tax year means another opportunity to save tax-free. Our research shows that with over £400 million set to be wasted this year, there are still far too many people who are not saving in a tax-efficient way.”
From 6 April 2012, the maximum amount that can be invested in an ISA in a tax year will increase from £10,680 to £11,280. Of this, savers will be able to put £5,640 into a cash ISA .
