Millions of children, pensioners and other people with low incomes are paying about £200m a year tax unnecessarily on savings because fewer than one in 10 banks and building societies tell them they can have interest tax-free.
The LITRG was formed by the Chartered Institute of Taxation (CIOT), a registered charity, to “give a voice to the unrepresented”. Its latest research looks like a fine example of helping people who cannot afford an accountant to find their way through the maze of Britain’s complex tax system.
Everyone aged less than 65 – including children – can receive up to £8,105 in the tax year which ends on April 5, 2013, without having to pay any income tax. People aged over 65 but less than 75 can receive up to £10,500 tax-free, while those aged 75 or more have a personal allowance of £10,660.