A new survey from The Share Centre found that for those who do not know the ISA limits, nearly a third (30%) under estimate the ISA allowance and one in seven (16%) wrongly over-estimate the limits.
Despite this confusion, appetite for tax free investment is high, with over a third (34%) saying they plan to invest the full amount into their investment ISA allowance this year.
Investors also have clear views on what they think the ISA allowance should be. Nearly half (46%) think the ISA allowance should be as much as an individual wants, with investors thinking that they already pay enough tax. Only a fifth (21%) agree that the ISA limits should be set at the current £15,000. The majority (75%) say that the ISA limits, set by the government, should be above the current amount.
A spokesman for The Share Centre, said: “The research shows that following the Chancellor’s Budget last year, many investors are yet to realise that they can shelter £15,000 from the tax man in an ISA.
“It is important savers look to make the most of ISA investing in light of the tax benefits, along with the added draw of being safeguarded from Capital Gains Tax. Savvy investors should look to make the most of the tax-free allowance each year and invest before the start of the new tax year on 5th April 2015.”
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