Overview

• HMRC has informed most savers it identified as owing tax on 2023-24 savings interest but admits some accounts were missed due to data-matching gaps
• Rising interest rates have increased the number of savers liable to pay income tax on their savings interest
• Eligible savers can combine the £12,570 Personal Allowance, up to £5,000 Starting Rate for Savings and £1,000 Personal Savings Allowance to shield up to £18,570 of interest from tax
• The Starting Rate for Savings allowance is reduced by £1 for every £1 of other income above the Personal Allowance and phases out entirely once non-savings income exceeds £17,570
• Savers who have already paid tax on savings interest can use a Self Assessment Tax Return to reclaim overpayments for up to the past four years