Lifetime tax bill may encourage investment

Tuesday, November 22, 2005

Axa, the insurance and asset management specialist, has said that the average British household will pay an astonishing amount in taxes over a lifetime.

The company, who offers a range of products from home insurance to investment bonds, has said that on average, 35.5 per cent of household income goes to the taxman, through measures such as VAT, fuel tax and income tax.

"These staggering figures demonstrate just how much the average Briton could spend in taxes - it's astonishing how the average British household will be paying more than £1 million in tax during their lives," said Mike Mumford, head of funds development at Axa.

Frighteningly, to pay the abovementioned £1 million in a lifetime requires a household of two under 30 to earn just £47,891 a year - less than £24,000 each.

This news about the amount of money lost to taxes could encourage savers to turn to the tax-free savings offered by ISA products or National Savings & Investments (NS&I) premium bonds.

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