Majority of savers unaware of new Isa allowance limits

Many consumers could miss out on their tax-free allowance from the start of the new tax year, according to Barclays.

The bank reports that 42 per cent of consumers are unaware that new limits - £5,100 for both cash and share individual savings accounts Isas – kick in from April 6th 2010.

Not only this, but only a quarter of savers are aware of what the allowances will be for the next tax year.

Andy Gray, head of savings for Barclays, said: "It is surprising to see that the plans to increase Isa limits across the board haven't really registered with UK consumers yet.

"We would urge people to review their savings to ensure they don't miss out on their tax-free allowance for this year and from April 6th 2010 when the new limits apply to everyone."

People aged over 50 saw their Isa allowances increase in October 2009, six months ahead of the rest of the population.

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2010-02-24 13:40:05 © Moneyextra.com