More than 2.6m taxpayers will incur tax bills on their savings in the 2025/26 tax year, according to HMRC figures shared with AJ Bell. This marks an increase of over 120,000 from the previous year. The average tax bill for affected savers is projected at £2,300, contributing to an estimated £6bn in revenue for HMRC. The rise is attributed to frozen tax thresholds and higher interest rates. While 1.15m basic rate taxpayers will face tax on their savings, approximately one in eight higher-rate and 45% of additional-rate savers will also be hit with a bill. Laura Suter of AJ Bell said: "These numbers highlight how the rising tide of interest rates has swept hundreds of thousands more savers into the tax bracket."
