Unused ISAs waste £15billion Go compare with our comparison table

Unused ISAs waste £15billion

22 March 2010 / by Rachel Mason

Only a third of taxpayers made use of their ISA allowance last year, wasting more than £15billion in tax payments, according to research by Fair Investment Company.

Nick Scarrett, head of investment and pensions at the firm says only 11.3million cash ISA accounts were opened in the UK in 2008/09, and considering there is a tax paying population of 30 million in the UK, that suggests only 37 per cent of us are making use of our tax free ISA allowances.

Fair Investment Company has calculated that the unused cash ISAs mean around £15billion was 'lost' to the taxman.

"Obviously it is not realistic to assume that every tax paying adult in the UK will use their full cash ISA allowance," said Mr Scarrett, "but these figures do highlight the fact that by paying tax on the money they could have saved in an ISA, UK taxpayers have thrown away billions of pounds in tax payments."

Fair Investment Company is urging people who haven't yet used their cash ISA allowances to do so earlier rather than later because the Easter break means the last working day is actually April 1st, so many applications will have to be in by then to make the year end of April 5th.

Mr Scarrett says that those who have a cash ISA already should consider transferring their money into a better paying ISA if they are not getting a good rate, and also urges investors to consider stocks and shares ISAs for potentially higher returns.

He says that although most people who have an ISA have a cash ISA (79.6 per cent of all ISA investments were cash ISAs in 2008/09), investors shouldn’t dismiss stocks and shares ISAs.

 “It is important that investors understand the risks, but stocks and shares ISAs can be a good option for many people, especially while cash ISA rates are so low," he said, adding, "there are lots of investment options within a stocks and shares ISA, including corporate bond funds, structured products and absolute return funds, which aim to provide either an income or capital growth (or a combination of the two), in good times and in bad."

 

 Product NameISA OptionIncome YieldMore Info
', eventAction: 'Account', eventLabel: 'Schroders Monthly High Income' });">Schroders Monthly High Income Fundyes
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', eventAction: 'Apply Now', eventLabel: 'Schroders Monthly High Income' });">More Info >
The Schroder Monthly High Income Fund aims to generate a high income, whilst not compromising capital, by investing in a diversified basket of fixed income securities. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">Invesco Perpetual Monthly Income Plus Fund ISAyes
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', eventAction: 'Apply Now', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">More Info >
Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
', eventAction: 'Account', eventLabel: 'Henderson Strategic Bond Fund' });">Henderson Strategic Bond Fundyes
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', eventAction: 'Apply Now', eventLabel: 'Henderson Strategic Bond Fund' });">More Info >
The aim of this fund is to deliver a quarterly income to investors by investing in higher yielding assets, which will include most types of fixed interest securities such as high yield bonds, investment grade bonds and government gilts, as well as having the ability to invest a proportion of the fund in equities. Income is paid to you quarterly.
', eventAction: 'Account', eventLabel: 'Schroders Income Maximiser' });">Schroders Income Maximiseryes
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', eventAction: 'Apply Now', eventLabel: 'Schroders Income Maximiser' });">More Info >
The Schroder Income Maximiser Fund ISA aims to deliver a target income yield of 7% pa, also providing potential capital growth. Income is paid to you quarterly. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Corporate Bond' });">Invesco Perpetual Corporate Bond ISAyes
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', eventAction: 'Apply Now', eventLabel: 'Invesco Perpetual Corporate Bond' });">More Info >
This highly popular fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Artemis Income ISA' });">Artemis Income ISAyes
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', eventAction: 'Apply Now', eventLabel: 'Artemis Income ISA' });">More Info >
One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Corporate Bond' });">Jupiter Corporate Bond Fund ISAyes
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', eventAction: 'Apply Now', eventLabel: 'Jupiter Corporate Bond' });">More Info >
The Jupiter Corporate Bond aims to achieve a high level of income with the opportunity for capital growth, through mainly investing in fixed interest securities. Income is paid to you twice yearly. 87.5% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'invesco perpetual high income' });">Invesco Perpetual High Income Fund ISAyes
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', eventAction: 'Apply Now', eventLabel: 'invesco perpetual high income' });">More Info >
One of the UK's most popular income fund ISAs the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'MandG Corporate Bond' });">M&G Corporate Bond ISAyes
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', eventAction: 'Apply Now', eventLabel: 'MandG Corporate Bond' });">More Info >
The M&G Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Merlin Income' });">Jupiter Merlin Income Portfolioyes
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', eventAction: 'Apply Now', eventLabel: 'Jupiter Merlin Income' });">More Info >
The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Fund Charge.
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†† Income payments are dependent upon the FTSE 100 Index.

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