New data from a Freedom of Information request by Paragon Bank reveals that the number of savers expected to pay at least £5,000 in income tax on savings interest has surged to 144,000 in the current tax year, a 173% increase over four years.
The figures show that 52,700 individuals had a tax liability exceeding £5,000 on savings income in 2022-23. This more than doubled to 117,000 in 2023-24, rising further to 133,000 in 2024-25 and 137,000 in 2025-26, with 144,000 projected for 2026-27.
According to CACI data cited by Paragon, there are 1.1 million instant access adult non-ISA savings accounts holding balances of £100,000 or more, with a combined value exceeding £260.7 billion. Many of these balances are generating significant taxable interest outside tax-free wrappers like ISAs.
Andrew Wright, head of savings at Paragon Bank, commented: 'These figures show that tax on savings is no longer an issue affecting just a small number of people. As balances have grown and rates have remained relatively high, far more savers are now finding themselves with substantial tax bills on their interest.'
He added: 'Reviewing your savings regularly, checking the rate you are earning, and making use of tax-efficient options where appropriate can help ensure more of your return stays in your pocket.'
