More to be hit with bill for interest on savings

THE number of savers paying tax on interest is to quadruple in just four years.

- By Conor Wilson

Data from HMRC shows 2.64 million people are to be dealt a savings tax bill in the 2025/26 tax year.

This figure is four times higher than in 2021, when 647,000 people were liable, and represents an increase of 120,000 from last year.

It means one in 25 basic-rate taxpayers will pay out on their savings this tax year, as Rachel Reeves scrambles to restore the nation’s finances.