Barclays: People are missing out on tax free allowances

Date: 24th February 2010

The number of people who do not know the maximum amount of money they can invest in cash ISAs is "worrying".

This is the view of Barclays bank, which recently published research which revealed that 70 per cent of people are unaware of the amount they can invest.

Barclays said this figure means a number of people could be missing out on their tax-free allowance when the new tax year stars.

In last year's Budget, chancellor Alistair Darling announced that the maximum amount that people will be allowed to invest in ISAs will increase from £7,200 to £10,200.

The chancellor also said that £5,200 of this could be held in a cash ISA.

Andy Gray, head of savings for Barclays said: "It's 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."