Advisers sound personal savings allowance tax warning as rates rise

‘There will be a lot of people unknowingly walking into a tax liability’

Ayesha Venkataraman
clock • 3 min read

As interest on savings rise, advisers should be on the lookout for potential breaches of the personal savings allowance leading to unforeseen tax bills, writes Ayesha Venkataraman...

Earlier this month, the Bank of England made its largest rate hike since 1989, hiking interest rates by 0.75%. The rise brings interest rates to 3%, the highest figure since the global financial crisis in 2008. While much has been written about the impact of this rise on mortgage rates, savings should also be considered, according to Old Mill Chartered financial planner Stuart Coombe. "There is another issue that has not been widely mentioned, and that is the fact that, with increased savings rates, there will be a lot of people unknowingly walking into a tax liability due to the fact...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

IHT reform 'unnecessarily complex': Agricultural and Business Property Relief plans under the microscope

IHT reform 'unnecessarily complex': Agricultural and Business Property Relief plans under the microscope

'The government has demonstrated some recognition that paying the IHT on qualifying assets may be difficult'

Sarah Wray
clock 18 March 2025 • 4 min read
Myth-busting HNW clients' most common misconceptions

Myth-busting HNW clients' most common misconceptions

‘I heard it from my mate down the pub…’

Rick Gosling
clock 13 March 2025 • 5 min read
Passing on wealth: How IHT changes will affect pension planning

Passing on wealth: How IHT changes will affect pension planning

'Change could result in significantly higher tax liabilities '

Joshua Croft
clock 11 March 2025 • 4 min read