# Budget 2026: how to beat the new savings tax rates

- URL: https://talkfuse.com/story/budget-2026-how-to-beat-the-new-savings-tax-rates/
- Published: 2026-10-31T07:00:36+00:00
- Updated: 2026-10-31T07:33:16+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/money/2026/oct/31/budget-2026-how-to-beat-the-new-savings-tax-rates
- Topics: Business

## Key points

- Savings tax rates rise by two percentage points from 6 April.
- The cash Isa limit remains £20,000 a year.
- Allowances can shelter some savings interest from tax.

## Summary

Chancellor John Healey has increased tax rates on savings and property income, adding two percentage points to rates previously due to rise in April 2027. From 6 April, savers across the UK will pay 24% at the basic rate, 44% at the higher rate and 49% at the additional rate, making it harder to preserve savings’ value after inflation.

Tax-free allowances can reduce the impact. Cash Isa interest remains tax-free, with the annual contribution limit staying at £20,000 after plans to cut it for under-65s were dropped. The personal savings allowance exempts up to £1,000 of interest for basic-rate taxpayers and £500 for higher-rate taxpayers; additional-rate taxpayers receive none. Some lower-income people may also qualify for a starting rate for savings of up to £5,000, depending on their other income.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.