Britons ignore ISAs and cost themselves 170 million in tax (Consumer)
- Over 4m people hold equities, but don’t use ISAs
- Over 7m people hold a savings account, but choose to use that instead of an ISA to safeguard their money from the taxman.
- Visit www.unbiased.co.uk/taketaxaction to see how YOU could save tax -
With the ISA deadline of 5th April just two months away, UK taxpayers are wasting 170 million by not using tax-efficient Individual Savings Accounts, says Unbiased.co.uk the website promoting the benefits of independent financial advice.
There are two ways in which Britons are costing themselves in tax. 86 million is being paid out as a result of savings which do not make use of ISAs, and 84 million occurred as a result of equities being held outside ISAs. April 5th 2007 is the deadline for individuals to contribute up to their annual limit (3,000 for cash ISAs; 7,000 for maxi ISAs) towards Individual Savings Accounts 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 commented “Whether or not to put your savings and/or other investments into an ISA is a straightforward decision. If you do not use an ISA, you will pay more tax – it really is as simple as that. We would urge consumers to always take independent financial advice before taking out any financial product, but an Individual Savings Account is an excellent place for your money.”
These figures have been calculated as a result of Unbiased.co.uk’s annual TaxAction** campaign, now in its fourteenth year, which highlights the 7.6bn in unnecessary tax paid by UK savers this year.
To find a local IFA in your area who can advise you on ISAs or other tax-efficient methods of saving, go to www.unbiased.co.uk or call 0800 085 3250. You can also access simple tips on how to be more tax-savvy, find an online tax wastage calculator, and a comprehensive guide to saving tax through our dedicated website at www.unbiased.co.uk/taketaxaction/.
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** TaxAction 2006 was produced for IFA Promotion by RAKM, and is partly based on a specially commissioned analysis of Inland Revenue data combined with other sources such as the Family Resource Survey.
For further information please contact:
David Elms | Laura Wood/ Jonathon Grove |
Chief Executive | Lansons Communications |
Unbiased.co.uk | 020 7294 3689/ 020 7294 3653 |
020 7833 3131 |
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For expert comment or case studies from over 200 media-friendly IFAs, journalists should call unbiased.co.uk’s Media Services hotline on 020 7294 3682 or search online at www.unbiased.co.uk/media
1. Independent Financial Adviser Promotion
Unbiased.co.uk is the consumer brand of IFA Promotion, the organisation established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents around 9,000 firms of independent financial advisers across the UK, incorporating over 17,000 registered individuals. These individuals hold over 20,000 incremental qualifications which are each individually verified by the awarding body. IFA Promotion welcomes the prominent display of incremental qualifications and further developments into the credentials of independent financial advice.
IFA Promotion is sponsored by 31 leading financial institutions, and in the past 12 months, over 600,000 consumers and businesses used unbiased.co.uk to find local independent financial advice.
IFA Promotion believes Independent financial advice should be:
- Affordable. The option to take independent financial advice should be available, by right, to all- not just the wealthiest in society.
- Convenient. IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.
- Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotion’s sponsors
Aberdeen Asset Management
Lincoln Financial Group
Abbey
Mortgage Express
AEGON Scottish Equitable Plc
National Savings & Investments
Alliance Trust
NatWest Business Banking
AXA Life
New Star Investment Funds
Bright Grey
Norwich Union Life
BUPA Health Services
Prudential
Canada Life Ltd
Scottish Life
The Children’s Mutual
Scottish Life International
Clerical Medical Investment
Scottish Widows Plc
Defaqto
Skandia UK Group
Friends Provident
Standard Life Assurance Company
GE Life
UnumProvident
Invesco Perpetual
Webline Limited
Legal & General
Zurich Intermediary Group
London Mortgage Company