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British savers squandering £263 million in tax

It has been revealed that in total UK taxpayers are paying £263 million each year in tax on their income, while ignoring the various tax efficient vehicles on the market. Such simple actions as utilising their cash Isa allowances would have alleviated the around £165 million in tax with a further £98 million paid in dividend income which could be held in a tax-free environment.

The current government regulations allow up to £3600 per annum to be paid into a tax-free cash Isa and £7200 into an equity Isa. As incomes become ever more squeezed it has never been more vital to make full use of the tax efficient vehicles on offer because once the tax year is over you are not able to backtrack contributions and utilise past tax allowances.

Many people fall into the trap of assuming tax efficient vehicles such as Isas are only for the rich when in reality they could play a major part for everybody. If somebody were to offer you a tax rebate tomorrow you would no doubt snap their hand-off, so why are so few people in the UK willing to go that extra mile and introduced tax efficient investment vehicles into their portfolios?

It is vital that you contact a qualified IFA for advice before taking any investment decisions.

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