Take advantage of Isas, says Nationwide
08/03/2007
Consumers in the UK need to take full advantage of their annual individual savings account (Isa) allowance before the end of the tax year, according to Nationwide Building Society.
By failing to use their whole yearly Isa allowance, the UK's savers could be paying over £500 million extra in tax, it warns.
Cash and equity Isa holders alike are failing to top up their accounts this tax year by £35.4 billion and £17.3 billion respectively, the building society states.
Moreover, there is still 60 per cent of the UK population who do not currently hold an Isa.
Stuart Bernau, Nationwide's executive director, said: "With the Isa season drawing to a close, people should act quickly to take advantage of the tax-free savings on offer by using this year's Isa allowance.
"Any part of their allowance remaining unused by April 5th will be lost forever."
He added that there are millions of people who fail to do this every year, meaning that their hard-earned money ends up lining chancellor Gordon Brown's coffers.
Recently, the Treasury announced that it is to simplify the Isa scheme, partly to encourage savers to diversify their assets.
By failing to use their whole yearly Isa allowance, the UK's savers could be paying over £500 million extra in tax, it warns.
Cash and equity Isa holders alike are failing to top up their accounts this tax year by £35.4 billion and £17.3 billion respectively, the building society states.
Moreover, there is still 60 per cent of the UK population who do not currently hold an Isa.
Stuart Bernau, Nationwide's executive director, said: "With the Isa season drawing to a close, people should act quickly to take advantage of the tax-free savings on offer by using this year's Isa allowance.
"Any part of their allowance remaining unused by April 5th will be lost forever."
He added that there are millions of people who fail to do this every year, meaning that their hard-earned money ends up lining chancellor Gordon Brown's coffers.
Recently, the Treasury announced that it is to simplify the Isa scheme, partly to encourage savers to diversify their assets.
