A finance expert warns UK individuals with savings exceeding £3,500 to be mindful of potential tax liabilities due to high interest rates. He explains that exceeding the annual interest allowance can result in unexpected tax bills, particularly for higher-rate taxpayers. The expert advises utilizing a Cash ISA to avoid this tax burden.
A stock trader has shared a tax warning affecting people with savings over £3,500 who meet certain criteria.
"If you're a basic rate taxpayer this means you can earn up to £1,000 in interest tax-free, but this number falls to just £500 if you're a higher rate tax payer – so that's anyone earning over £50,270." To make matters worse, Michael pointed out that as thresholds haven't risen in line with wages in recent years and with prices of goods rocketing, it means people are now paying a "stealth tax" despite not being much better off.
One TikTok user slammed in response: "How can they justify taking so much from us all? Absolute robbery!" A second pondered: "Are the government intentionally trying to make people leave the UK? Because that’s what’s going to happen."
TAX SAVINGS INTEREST RATES HMRC CASH ISA
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