Britons Lose £322 Million in Tax Overpayments

· Average income tax liability now stands at £4,200, almost doubling since 1990

· The total number of taxpayers has increased by 14 per cent since 1989/90 but tax liability has rocketed by over 171 per cent

· £224 million is lost in tax by those who don’t transfer deposits to their lower taxed partners

- Visit www.unbiased.co.uk/taketaxaction to see how YOU could save tax -

Failure to claim back overpayments of tax has resulted in the UK tax-paying population losing out on £322 million in the last year, according to research by Unbiased.co.uk. The average income tax liability now stands at £4,200, which has almost doubled (risen by 97.3%) since 1990.

Unbiased.co.uk, the website promoting the benefits of independent financial advice, calls all tax-payers to act now and claim back this un-necessary over payment of tax. While the total number of tax payers has only increased by 14 per cent, overall tax liability has rocketed by over 171 per cent since 1989/90. With more people classed as higher rate tax payers than ever before, Unbiased.co.uk calls to action all UK taxpayers to ensure they are not giving more to the taxman than they should be.

David Elms, Chief Executive of IFA Promotion commented: “It is easy and straightforward to reclaim any over paid taxes that have been deducted inaccurately, by filling out an R85 form. Over-paid tax can be reclaimed from the HMRC up to five years previous so it isn’t too late if you think you have been paying too much.”

Partners on different tax allowances can spread income from sources other than employment between them to avoid paying too much tax. If this was followed, Unbiased.co.uk’s research shows that between the 1.6 million non-taxpaying partners in higher-income households £224 million would be saved.

David Elms continues, “The transfer of assets between partners subject to different tax rates can result in the reduction of tax liability and can provide an extra slice of savings for many households. With individuals being taxed on pensions, interest from banks, dividends from shares and income from property there are many different sources of income that can be shared between a couple to avoid paying un-necessary tax.”

To find a local IFA in your area who can advise you on tax credits 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/.

-ends-

** 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

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Britons Lose £322 Million in Tax Overpayments

Britons Lose £322 Million in Tax Overpayments

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