• Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more
 

Millions are missing out on tax breaks from Isas, with fewer than a third of eligible adults investing

Two-thirds of adults – 33 million people – have neglected to save or invest any money into tax-friendly Individual Savings Accounts.

Rules allow each person over the age of 18 to put aside up to £15,000 in a cash Isa, or a stocks and shares Isa, or a mix of the two.

In the next tax year, starting on April 6, individuals can put aside £15,240 and shelter gains from Revenue & Customs.

But research by Axa Self Investor, a stocks and shares Isa provider, reveals that fewer than a third of eligible adults have taken up the offer.

Of those, 54 per cent did not know what the Isa limit was, with savers on average leaving three-fifths of their annual allowance unused.

Anyone with plentiful savings should fill up their pots to the £15,000 limit before the end of the tax year on April 5.

Adrian Lowcock, head of investing at Axa Self Investor, says: ‘Households could be paying billions in needless tax, because they are not using their full Isa limit.’

But experts also point to valid reasons why some may have shunned Isas, including the low interest rates on offer on cash accounts.

Hannah Maundrell, editor of comparison website money.co.uk, says: ‘You can’t blame disillusioned savers for using the money to pay off expensive debts or playing the system by using high interest current accounts. But interest rates will rise.

‘Any money paid into Isas now will keep its taxfree status ongoing so it’s worth taking advantage.’

Among the top paying cash Isas, with a fixed rate for one year, is Virgin Money’s deal at 1.7 per cent for a minimum deposit of £1, available in branches, online, by phone or by post.

The Post Office also offers a branch or postal account paying 1.55 per cent for a minimum deposit of £500.

Source:  thisismoney.co.uk

Sam: 26th Jan 2015 14:27:00

 

Latest News

Shift from annuities to drawdown continues
Shift from annuities to drawdown continues

Read More >>

Base rate rise could cost variable borrowers £83m
Base rate rise could cost variable borrowers £83m

Read More >>

It costs £10,830 a year to be a pensioner
It costs £10,830 a year to be a pensioner

Read More >>

Buy-to-let market pauses for breath amid new rules
Buy-to-let market pauses for breath amid new rules

Read More >>

Remortgage and beat the base rate rise
Remortgage and beat the base rate rise

Read More >>

See all News...
  • Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more