# ‘Punishing’ Autumn Budget tax trap set to deal further blow to HENRYs

- URL: https://talkfuse.com/story/punishing-autumn-budget-tax-trap-set-to-deal-further-blow-to-henrys/
- Published: 2026-11-04T10:42:59+00:00
- Updated: 2026-11-04T17:37:18+00:00
- Original publisher: City AM (publisher lean: Right)
- Original article: https://www.cityam.com/punishing-autumn-budget-tax-trap-set-to-deal-further-blow-to-henrys/
- Topics: Business, UK, World

## Key points

- Some workers just over £100,000 could face a 64 per cent marginal rate on savings interest.
- The planned two percentage point tax rise begins in April 2027.
- Crossing the threshold can also mean losing free childcare hours.

## Summary

A planned two percentage point rise in tax on savings interest from April 2027 could push the effective marginal rate to 64 per cent for some workers earning just over £100,000. The increase combines with the personal allowance taper, which removes £1 of allowance for every £2 earned above that threshold, raising the tax cost of savings interest for people caught in the taper.

The article says higher-rate taxpayers will pay 44 per cent tax on savings interest and additional-rate taxpayers 49 per cent after the rise, while personal tax thresholds remain frozen. A worker earning £110,000 has a £500 personal savings allowance; interest above it can trigger both savings tax and the loss of personal allowance. Someone earning £200,000 has already lost their allowance through salary, so the article says their savings interest faces the 49 per cent rate without that extra taper effect. It also notes that crossing £100,000 can remove free childcare hours, and cites IG research on the impact on saving and investment.

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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.