Overview
- Basic-rate taxpayers liable for savings tax have risen to 1.42 million, with an average bill of £641, according to HMRC figures obtained via FOI.
- Higher‑rate payers are up to 883,000 with an average £2,030 due, and 479,000 additional‑rate taxpayers face average bills of about £6,990.
- People aged 65 and over are forecast to pay £2.5 billion in savings tax in 2025/26, a 215% increase on 2022/23.
- HMRC letters notifying liabilities are reported to be arriving as the Personal Savings Allowance stays frozen at £1,000 for basic‑rate, £500 for higher‑rate and £0 for additional‑rate taxpayers.
- Paragon Bank is urging savers to use cash ISAs before 5 April 2026, while coverage notes a reported £12,000 annual cash ISA cap from 2027 and warnings that savings tax will rise from April 2027.