ISA-shy Brits waste £144 million

Brits are handing over £144 million to the government in taxes they don’t need to pay by failing to put their savings in a tax-free account.

Research by Unbiased.co.uk found £109 million is being wasted by 6.2 million savers who don’t keep their savings in a tax-free cash ISA account.

Some 1.7 million shareholders are wasting a further £35 million by not transferring their holdings to an equity ISA.

David Elms, Unbiased.co.uk chief executive, said it’s more important than ever for savers to maximise returns on their investments because of the current climate on low interest rates.

“It is more important than ever for consumers to be astute when it comes to managing their savings – and make sure they are not paying unnecessary money to the taxman,” he said.

“Consumers should make sure they are using as much of their tax-efficient ISA allowance as possible, in order to avoid unnecessary tax payments.”

The research by Unbiased.co.uk comes ahead of an increase in the ISA allowance for savers aged over 50.

From 6 October, the total ISA allowance for people over 50 will increase from £7,200 to £10,200.

Consumer advice group Fair Investment Company said over 50s should already be looking for the best ISA.

“Over 50s investors should start shopping around now to ensure that when the increase arrives, they have found the best home for their savings,” a spokesperson for the site said.

Discuss this in the Finance Markets forums

Story link: ISA-shy Brits waste £144 million