Investors spooked by tax on savings and dividends

RACHEL Reeves’ Budget decisions have raised alarm bells among DIY investors after they were hit with tax hikes and cuts to incentives, despite the Chancellor wanting to push more money into the market.

- Maisie Grice

Over 70% of investors said they were concerned about the increased basic and higher rates of taxes on dividends, property and savings, according to analysis from wealth management firm Charles Stanley.

Under Budget measures, from April 2026, tax on dividends will increase by two percentage points for both basic rate and higher rate taxpayers.