More than £260m 'wasted' on savings tax

Date: 3rd February 2009

More than £263 million was unnecessarily paid in savings taxation last year, new statistics have shown.

Statistics published by Unbiased.co.uk reveal that this amount could have been saved if consumers had chosen to utilise their yearly tax-free ISA allowance.

Presently, people in the UK can save up to £3,600 in cash ISAs or £7,200 in equity ISAs without attracting taxation charges.

David Elms, chief executive of Unbiased.co.uk, commented: "Especially in the current environment when interest rates are low, it is important that people don't pay unnecessary money to the taxman.

"Savers should use the next few months to make sure they have made use of their annual ISA allowance."

He added that people would increasingly look into ways in which their money would "work harder for them".

Figures from the website also show that £726 million and £264 million were paid unnecessarily in pensions tax and capital gains charges last year.