Figures from HM Revenue & Customs have shown that 962,000 individuals rolled over a total of £7.45 billion into Tessa only Isa's in the 2001/2002 tax year. While much of this was invested in open-ended accounts, around £1 billion was invested in structured products that are due to mature early in 2006.
Tessa's were first introduced on 1st January 2001, and for the most part was rolled over into five-year equity linked Tessa plans that will mature next quarter. If investors take no action, the money usually defaults to a cash holding account.
Revenue rules state that savers had six months from maturity to roll over the original capital, after which time the money is returned to the investor, and the allowance lost forever.
Our view
What a success for us clever Brits keeping our tax efficient savings.