Britons ignorant of looming tax changes

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Eight out of 10 Britons are unaware of tax changes that will come into force at the beginning of April.

The start of the new tax year on April 5 will see a rise in the personal allowance to £7,475 for people aged under 65 who earn less than £100,000, while there are also increases in personal allowances for people over 65.

The amount people can save tax-free into an Isa is set to go up, but the threshold at which the 40 per cent tax rate kicks in will be reduced from £37,400 to £35,000.

However, research carried out by HSBC found the majority of people did not know about the changes. Awareness was low among people on lower incomes, the group that the personal allowance benefits the most.

Nearly three-quarters did not know that the current tax-free personal allowance for people aged under 65 is £6,475.