Consumers losing money by not getting Isas

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Consumers losing money by not getting Isas

Thu 8th Feb 2007

UK taxpayers are wasting a collective pot of around £170 million by not taking advantage of Individual Savings Accounts (Isas).

The deadline for individuals to contribute towards this year's Isa limit is April 5th and the consumer brand of financial adviser IFA Promotion, Unbiased, has urged consumers to take advantage of the tax-free savings.

At present, more than four million people in the UK hold equities but do not have an Isa. In addition, in excess of seven million have savings that are not tax-free and so the taxman is getting money that could be retained with an Isa.

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."

He went on to urge people to seek financial advice when considering any product but that Isas were an "excellent place" for a saver's money.

Limits for Isas are £3,000 for a mini and £7,000 for a maxi version of the saving account. Once April 5th has passed, the limit resets to zero and the individual is free to begin adding towards next year's limit.

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