ISA Inertia Costs Britons Over 382 Million
For immediate release: 03 March 2008
- Almost 4million people hold equities, but don’t use ISAs
- ISA waste more than doubles over the last year
- Visit www.unbiased.co.uk/taketaxaction to see how YOU could save tax -
With less than two months left to make full use of this year’s ISA allowance, research by Unbiased.co.uk shows that Britons are wasting over 382 million in tax by not putting their savings and investments into a tax-efficient savings account. This figure more than doubled over the last year.
Unbiased.co.uk, the website promoting the benefits of independent financial advice, shows that 249 million is being paid out in unnecessary tax a result of savings which do not make use of ISAs, and 133 million in tax payments occurred as a result of equities being held outside ISAs. April 5th 2008 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: “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 5th deadline, you will lose you tax-free savings allowance for the 2007/ 2008 tax year.”
These figures have been calculated as a result of Unbiased.co.uk’s annual TaxAction** campaign, now in its fifteenth year, which highlights the 7.9bn 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. 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/.
** TaxAction 2007 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 | Anna Schirmer/Jonathon Grove/ Anna Moulds |
Chief Executive | Lansons Communications |
Unbiased.co.uk | 020 7294 3682 |
020 7833 3131 |
|
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 22,000 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 28 leading financial institutions, and in the past 12 months, over 575,000 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
Abbey for Intermediaries
Lincoln Financial Group
Aberdeen Asset Management
Lutine Assurance Services
AEGON Scottish Equitable Plc
National Savings & Investments
Alliance Trust
New Star Investment Funds
AXA Life
Norwich Union Life
Bright Grey
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
The Hartford
Tomorrow
Invesco Perpetual
Unum
Legal & General
Zurich Intermediary Group
Registered Office: IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606