Brits advised to take advantage of tax breaks

With higher rate taxpayers facing tax burdens of up to 68 per cent Fidelity has advised people looking for the best savings interest rates to take full advantage of ISA tax breaks.

Fidelity International has calculated that with the increase to VAT and the proposed increase to National Insurance a basic rate tax payer could be paying out over 43 per cent in taxes on each pound they earn and spend.

Rob Fisher, head of UK personal investments at Fidelity International, said: "These figures will prove quite shocking to many of us.

"The amount we are now paying in taxes is really significant and people must ensure they take advantage of every tax break available to them."

Fidelity advised UK savers to look into opening an individual savings account ISA as it allows people to invest up to £10,200 each tax year in a stocks and shares ISA with returns free of income of capital gains tax.

Leeds Building Society recently launched a market leading 18-month fixed-rate ISA which offers some of the best savings rates on the market.
 

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2011-01-13 16:16:07 © Moneyextra.com