Maidstone, United Kingdom, April 11, 2013 --(PR.com
)-- First Direct, who carried out the study, revealed that 14% of those surveyed used their ISA allowance. 14% of those who used this allowance revealed that they didn’t actually know how an ISA worked, with over a half of these people stating that they felt the whole application process was too complicated.
Quite surprisingly 6% of those who took part in the survey revealed that they didn’t know that stocks and shares ISAs existed.
First Direct suggested that some participants did not realize that using their cash ISA limit was a prerequisite for holding stocks and shares ISAs as 1 in 10 of those surveyed had not yet used their cash ISA limit.
Throughout the course of the 2013/2014 tax year savers are able to invest a sum of £11,520 into their ISA. Any gains they receive from this will be "free" from income tax and capital gains tax. £5,760 of this limit can be invested in cash and the remaining amount can be placed in a stocks and shares ISA. As another option the total figure could be invested in stocks and shares.
Marcus Redford, Director at Redford & Co, a firm of chartered accountants in London commented; “It is essential that people realise the advantage of using their ISA allowance whether for cash savings or stock market investments as a significant amount of tax can be saved.”
Redford & Co have developed a number of industry specialisms within the tax industry and specialise in the following areas: capital taxes, corporate and business tax advice, expatriate, non-domicile and offshore tax planning, personal taxation and national insurance. For further information on Redford & Co's tax services
visit their website for more details.