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UK taxpayers waste £4bn

Britons are wasting £4bn in unnecessary tax, according to IFA Promotion&#39s 10th annual Tax Action report.

The survey, carried out by independent research agency Mintel, shows that nine out of 10 adults pay more tax than necessary through financial inertia or lack of understanding of the tax regime.

The figure of £4bn is down by 30 per cent from £5.7bn last year. Mintel believes this is the result of the reduced number of tax breaks available, such as Tessas and the married couples&#39 allowance. The fall is also attributed to recent stockmarket and interest rate falls rather than any substantial increase in people&#39s tax efficiency.

IFAP is publishing a free guide to tax efficiency, explaining the steps that can be taken to reduce tax in the areas of investment, earnings, inheritance, charitable donations, pensions and capital gains.

The research shows that £253m could be saved by more effective use of Isa allowances, while up to £1bn is being paid in inheritance tax that could be avoided through planning.

Consumers are also failing to maximise their personal allowances for savings, with £315m being lost by non-taxpayers failing to claim tax back on bank and building society savings accounts. A further £90m is lost by taxpayers not transferring savings accounts to non-taxpaying spouses.

IFAP chief executive David Elms says: “Most of us would not willingly give the taxman hundreds of pounds of our hard earned money but this is just what is happening. People need to step back and see if they are being tax-efficient and, if not, take action to streamline their finances.”


Halifax pays out £7m to borrowers

Halifax is attempting to draw a line under the ombudsman ruling by offering £7m in compensation to 30,000 borrowers who complained after being barred from its base mortgage rate.The bank is paying £500 in compensation to 10,000 existing borrowers with capped or discounted loans who protested before January 31 that they were not allowed to […]

Call for industry to take trek challenge

Fund manager State Street is challenging teams from across the financial services sector to trek the Scottish Highlands to raise money for charity.The State Street Caledonian Challenge aims to raise £1m for the Scottish Community Foundation through sponsorship of up to 375 teams of four trekking 54 miles along the West Highland Way in 24 […]

CMIM announces marketing appointment

Clerical Medical Investment Management has announced the recruitment of David Holloway as marketing campaign manager.Holloway, who joins from Swiss Life where he was marketing communications associate director, will report to marketing director David Norman at the fund manager arm of HBOS.Norman says: “David has extensive experience gained in a number of major investment houses. His […]

Capital gains tax planning

Although income tax will be top of the tax planning agenda for most, and comparatively few people actually pay capital gains tax, when it is payable it is usually payable at the highest rate of tax, capital gains being added to taxable income to determine the level of capital gains tax payable.The availability of the […]

Global energy: positioning for a recovery in the oil price Š

Richard Hulf explains how he and John Dodd have positioned the Artemis Global Energy Fund and where they are finding opportunities. Richard explains how he and John are changing the complexion of the fund to focus on the most efficient oil producers. As he tells journalist Alexis Xydias, in this environment of lower prices, he […]


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