The tax association also revealed that the recovery in the stock market is clearly being marked by savers, who last year invested GBP10.36 billion in stocks and shares individual savings accounts (ISAs) – the highest investment in this component since 2002.
Around 20 million savers currently hold ISAs and have invested around GBP300 billion.
Tax Incentivised Savings Association (TISA) director general Tony Vine-Lott said: While there are headlines claiming the savings ratio is at its lowest ebb, we can see from official HMRC figures that ISAs are booming. The 2006/2007 tax year was a record – showing that tax incentivised savings remain hugely popular with millions of people. TISA will be looking to ensure the popularity of ISAs remains high on the public policy agenda.