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flag Over 1.1 million UK pensioners will owe tax on savings in 2025-26 due to higher interest rates and unadjusted tax thresholds.

flag Over 1.1 million UK pensioners are expected to owe tax on savings interest in 2025-26, more than double the 2022-23 figure, driven by rising interest rates and frozen tax thresholds. flag Nearly half of the 2.64 million people paying tax on savings income are state pensioners, with over 80,000 facing the top 45% rate. flag The increase stems from retirees shifting to cash savings amid economic uncertainty and unchanged personal savings allowances, which are not adjusted for inflation. flag While no income tax rise has been confirmed for the 2025 Autumn Budget, changes to how savings income is taxed could still raise liabilities.

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