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...

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