Portman urges ISA use

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Portman urges ISA use

Mon 10th Oct 2005

By failing to make use of tax free ISAs, UK taxpayers are missing out on £4 billion of tax free interest, according to Portman Building Society.

Figures from the society show that out of a total of 30 million taxpayers in the UK, only 17.5 per cent currently hold a cash ISA.

So far this year, only 11 per cent of the population chose to utilise the ISA facility, with almost 90 per cent losing out on the tax free interest that they provide.

Helen Shaw, group communications manager for Portman Building Society commented: "With six months to go until the end of the tax year it is shocking that almost 90 per cent of people have not yet taken out an ISA to make the most of their tax free savings allowance.

"Cash ISAs are one of the easiest and most efficient ways to save, and for higher rate taxpayers they can offer over three times as much in interest than a standard instant access account."

Portman predicts that by not making use of cash ISAs, the population is losing out on approximately £2.3 billion in tax free interest as a whole.

Portman is the third largest building society in the UK with assets of over £15 billion.

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