Britons 'are confused' over Isas

Monday, February 22nd 2010

Many Brits could be missing out on tax-free savings because they do not understand the regulations concerning Isas.

This was the finding of a survey by NS&I, which looked at whether or not people in the UK understand the limits on tax-free savings.

Some 25 per cent believed that allowances on Isas will be the same in the next financial year.

Just one of the changes due to occur in April is the end of a higher Isa limit for over 50 year-olds.

But ten per cent of those surveyed were unaware that this will no longer be the case.

Sales director at NS&I John Prout said: "Understanding the allowances and reviewing the terms of the product is vital for savers."

With the end of the financial year looming, now is the ideal time to maximise savings and invest in an Isa, he advised.

According to the organisation, the new regulations are only understood by 15 per cent of Britons.

Under these rules, individuals will be able to save up to £10,200 each year tax-free.

HM Revenue & Customs states that the current annual subscription limit stands at £7,200.