With cash interest rates now above 5 per cent on some accounts, individuals with as little as £10,000-£20,000 in cash can expect to be impacted.
AJ Bell is calling on the chancellor to end the freeze on the personal savings allowance, which has been set at the same level since 2016.
A HM Treasury spokesperson said: “The best thing we can do to help savers is to drive down inflation, and we have a clear plan to halve it this year, then get it back down to 2 per cent.
“We have a number of tax policy measures to help people boost their savings – meaning around 95% of taxpayers don’t pay tax on their savings income.
“On top of the personal savings allowance, there is a generous £20,000 tax-free allowance available through an ISA and people on lower incomes can benefit from the starting rate for savings band."
sonia.rach@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
