Sarah Coles, personal finance analyst at Hargreaves Lansdown said: “In many cases the taxman hasn’t had to increase taxes in order to take more of our money. He just waits for our incomes to rise and asset values to increase, and he’s set for a tax bonanza.
“Given that the taxman is so skilled in the art of taking as much of your money as possible, it’s up to us to ensure we’re not paying more than our fair share. It’s essential we take advantage of as much of our allowances as we can, from ISAs and LISAs to pensions. So you can enjoy the fruits of your labours, without the taxman taking a bite.”