11 April 2008

ISA Inertia Costs Britons Over £382 Million

- 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 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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