Many consumers 'ignoring Isa accounts'

Just 37 per cent of UK taxpayers subscribed to a cash Isa in 2008-09, a new report has indicated.

According to Scottish Widows, consumers lost an estimated £15.5 billion in unnecessary tax payments as a result.

Nick Scarrett, head of investment and pensions at Fair Investment Company, noted that just 11.3 million cash Isa accounts were opened in the UK during the year, out of a possible 30 million.

"Only just over a third of us made use of our Isa allowance," he added.

"These figures do highlight the fact that by paying tax on the money they could have saved in an Isa, UK taxpayers have thrown away billions of pounds in tax payments."

From April 6th, all consumers will be able to place £5,100 tax-free in a cash Isa and the equivalent sum in a stocks and shares account every year.

"If you do want to make the most of it, get investing - if you don't use it, you lose it," Mr Scarrett added.

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2010-03-19 13:29:39 © Moneyextra.com