Martin Lewis this afternoon issued a warning to all savers – and said people could end up paying more tax after today’s Budget. Chancellor Rachel Reeves this afternoon announced that anyone who crossed the threshold will pay more tax in the November Budget.
In documents released for the Budget the Treasury confirmed tax rates on savings income will be increased by 2 per cent at the basic, higher and additional rate from 6 April 2027 and the Starting Rate of Savings limit will be maintained at £5,000 from April 2026 to April 2031
Mr Lewis said: “Additional 2% tax on savings (and property and dividends)T. So if you pay tax on savings (ie more interest above the personal savings allowance and outside of ISAs) the tax will rise to 22% from April 2027.”
Tax rates on property, savings and dividend income will rise by two percentage points, Chancellor Rachel Reeves said. She told the Commons: “Currently, a landlord with an income of £25,000 will pay nearly £1,200 less in tax than their tenant with the same salary because no National Insurance is charged on property, dividend or savings income.
Read the full text here