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MoneyWeek reports that the UK Budget will add a further two-percentage-point rise to tax rates on savings income from April 2027, on top of a rise already planned for April. The report says the highest earners could face a rate close to 50% on savings interest; the source material does not provide the full policy documentation or details of affected thresholds.
Tax on savings interest is set to rise by a further two percentage points from April 2027, according to a MoneyWeek report on the 2026 Autumn Budget. The report says this increase would come on top of a two-point rise already scheduled for April, leaving the highest earners facing a rate close to 50% on savings income.
MoneyWeek reported that Chancellor John Healey announced the additional increase in the 2026 Autumn Budget. The publication described the measure as a further two-percentage-point rise in tax on savings income, taking the total increase it reported to four percentage points across the two changes. The first rise is due in April, followed by the additional rise in April 2027.
The report says the higher rate would affect the tax charged on interest earned from savings, with the greatest effect on people already paying the highest rates of income tax. It characterises the resulting rate for top earners as “near-50%.” The source material does not give the specific tax bands, explain how the figure is calculated, or set out how the change interacts with individual allowances.
The headline also raises the question of how savers might limit their exposure to tax. However, the supplied report extract does not provide a detailed list of options or personalized guidance. The applicable outcome will depend on a saver’s circumstances and the final rules; the reported change should not be treated as a recommendation to move money into any particular account or investment.
Higher Rates Could Cut Net Interest
If implemented as reported, the increase would reduce the after-tax return on taxable savings interest for people affected. The impact depends on the amount of interest earned, the saver’s tax status and any applicable allowances or exemptions. A two-percentage-point rise in a tax rate does not mean every saver’s interest payment will fall by the same amount: it changes the tax applied to relevant income, rather than directly changing the account’s stated interest rate.
The measure matters to savers comparing the return they receive with the tax they may owe. People holding substantial balances outside tax-advantaged accounts could be more exposed, but the supplied material does not quantify how many people would be affected or estimate the average change in tax bills. Those figures would be needed to assess the overall household impact.
For readers, the practical issue is to distinguish tax on interest from the interest rate paid by a bank or building society. The report concerns the former. It does not say that savings providers will lower their rates, nor that every saver will pay more tax; individual liability depends on their income and the rules that apply to them.
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Two Increases Reported for Savings Income
The reported measure is presented as the second part of a two-stage rise. MoneyWeek says tax on savings income was already scheduled to increase by two percentage points in April, and that the Autumn Budget added another two-point increase from April 2027. Together, the changes amount to a four-percentage-point rise in the rates described by the report, although the supplied extract does not specify each tax band or its starting rate.
The report frames the new increase as a Budget decision by Chancellor John Healey. Its wording refers to tax on “savings income” and interest earned on savings. The extract does not include the Budget’s official policy text, a government announcement link or detailed explanatory notes. The distinction matters because the full measure’s scope, timetable and treatment of different taxpayers should be checked against official documentation before drawing conclusions about a particular account or household.
MoneyWeek’s headline refers to ways to shield money from HMRC, but the source material supplied here is limited to the reported tax rises and the near-50% description for top earners. It does not substantiate specific tax-planning strategies, eligibility conditions or limits. Any such options would need to be assessed against the final rules and a person’s own circumstances.
“The highest earners face a near-50% tax rate on savings interest from April 2027.”
— MoneyWeek
Tax Bands and Final Rules Await Detail
The material provided does not include the official Budget documents or a detailed government explanation of the measure. It is therefore not possible from this source alone to confirm the exact starting rates, which taxpayer bands will change, how the “near-50%” figure is derived, or whether any exceptions or transitional arrangements apply.
It is also unclear how the changes interact with the allowances that determine whether a person owes tax on savings interest, and how many savers would be affected. The report’s wording describes a planned policy and its timetable, but the supplied material does not establish whether legislation has been passed or whether further changes are possible. Readers should distinguish the report’s account of the Budget from the full legal rules.
Official Guidance Will Set the Detail
The next step is publication or review of the official Budget policy documents and any legislation setting out the rates, thresholds and implementation arrangements. Those details will clarify how the April increase and the additional April 2027 rise apply to different types of taxpayers and savings income.
Until the rules are available, savers can check information from HMRC and the government rather than relying on a headline rate alone. The dates and figures here are those reported by MoneyWeek; the supplied source material does not state when further explanatory guidance will be issued. Any decision about changing savings arrangements should account for tax rules, access needs and the possibility of losing money where investments carry risk.
Key Questions
When is the additional tax rise on savings interest due?
MoneyWeek reports that the additional two-percentage-point rise is due from April 2027. It also says a separate two-point rise is already scheduled for April; the supplied extract does not give the exact day or full implementation details.
Will every saver pay more tax?
The report does not say that every saver will be affected. Whether a person owes tax on interest depends on their income, tax status and applicable allowances. The source material does not provide enough detail to calculate an individual’s liability.
What does the report mean by a near-50% rate?
MoneyWeek says the highest earners could face a rate close to 50% on savings interest after the changes. The supplied extract does not show the calculation, the tax bands involved or how the figure relates to a particular saver.
How can I shield my savings from the reported rise?
The supplied report extract does not set out specific ways to reduce tax or explain eligibility and limits. The final rules and a person’s circumstances matter, so check official HMRC guidance or seek qualified tax advice before making a decision.
Source: moneyweek.com
