Feb 8 2007
Consumers who ignore the benefits of individual savings accounts (Isas) are collectively paying £170 million in unnecessary taxes, claims a new report.
Tax revenue generated from standard savings accounts each year amounts to £86 million as over seven million savers do not take advantage of tax-free Isa products, according to IFA Promotion.
In addition, the firm which promotes independent financial advice reveals that four million people in the UK who hold equities outside of Isas pay about £84 million in taxes each year.
The chief executive of the firm, David Elms, says: "If you do not use an Isa, you will pay more tax - it really is as simple as that."
Mr Elms adds the statistics show that: "Whether or not to put your savings and/or other investments into an Isa is a straightforward decision."
The spokesman also notes that consumers should always consider obtaining independent financial advice before selecting any kind of product, including an Isa.
Meanwhile, savers are being urged to invest in an Isa before this year's April deadline, as a recent poll from Co-operative Financial Services found that almost three-quarters (72 per cent) of people are not intending to do so in time to take advantage of tax benefits.
