Tax tips could save Britons billions of pounds

Monday, March 22nd 2010

Savers who are looking to maximise their investments may be interested in tax tips from HSBC.

The bank claims that Britons can be more tax efficient if they follow certain steps, which are particularly important as the end of the tax year is looming.

Checking tax codes to see if they are correct is worth spending some time on, as wrong codes could result in too much tax being paid.

And using maximum Isa allowances could help some people to save more money.

Head of investment, insurance and savings at HSBC David Wells explained: "An estimated £9 billion in tax is paid out by individuals unnecessarily each year. Reducing unnecessary tax should be a priority for all households."

Pension allowances can also offer financial benefits, as there is tax relief available on contributions for certain savers.

Inheritance tax (IHT) is something which can confuse many people, so transferring certain assets early on could lead to less tax being paid.

HM Revenue & Customs notes that IHT is payable by those whose estates are valued at more than £325,000, charged at 40 per cent above the threshold.