Savers to lose £100m in taxation, data shows

Date: 4th March 2009

British savers could lose up to £100 million in unnecessary taxation, new statistics have shown.

Figures released by the Nationwide Building Society reveal that the UK's ISA allowance could be under-funded by as much as £12 billion.

According to the study, a large number of savers do not realise that up to £3,600 of cash in an ISA is taxation free, while the overall limit including stocks and shares is £7,200.

Director of savings and mortgages for Nationwide, Andy McQueen, commented: "The end of the current tax year is fast approaching which means there's not much time left for consumers to make use of their ISA allowance.

"If appropriate, one way consumers can make good use of the ISA allowance is to take advantage of the fixed-rate ISA products available."

Meanwhile, a recent investigation by the Trades Union Congress revealed that overseas taxation havens cost the UK £4 billion each year.