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Savers are facing having to pay tax for first time on interest, UK households are being warned. HMRC, the tax arm of the Labour Party government, could hit savers with "tax on savings for the first time", personal finance experts are warning.

Now with the Self Assessment registration in the rearview mirror, those who fail to meet it face being stung. 2.64 million individuals will owe tax on their savings interest in the 2025/26 tax year, a staggering increase from merely 647,000 in 2021/22, according to online financial institution Raisin.

It means approximately one in every 25 basic-rate taxpayers and one in eight higher-rate taxpayers will be in HMRC's crosshairs. Under HMRC allowance rules, basic-rate taxpayers can receive £1,000 in interest annually without paying tax

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