Chancellor Rachel Reeves has approved major changes to how savings income may be taxed in the UK, potentially affecting anyone with money held in bank accounts. This follows broader government actions to rebalance public finances, address fiscal pressures and rewire Britain’s financial system to support growth and competitiveness.

Under the proposals, tax on savings interest could be collected differently in future, reducing the net return for savers. This marks a shift from previous rules that allowed basic rate taxpayers to earn interest tax free up to a set allowance, with critics warning that even modest savings could face higher tax.

From 2027, banks are expected to request National Insurance numbers from standard savings account holders, with this data shared directly with HMRC.

• • Once the rules become law, expected next year, most savers will not need to take immediate action unless further changes are announced.

  • Banks already report interest to HMRC, but around 20 percent of this data is difficult to match accurately, limiting automatic tax collection.

  • The reforms aim to close this gap, with HMRC expecting to raise over £6 billion in additional tax from savers.

  • The government estimates implementation costs of more than £35 million.

For everyday savers, the message is clear. Cash left in standard bank accounts may deliver lower returns once tax is applied, particularly in a low interest rate environment.

At Roman Brothers, we are known for educating our clients on gold and its long-standing role in preserving wealth. Historically, gold has acted as a safeguard against inflation and currency erosion. Unlike cash savings, gold is not directly reduced by savings tax or negative real interest rates. As a physical asset, it retains value over time.

If you are concerned about how these changes could affect your savings, now may be the time to explore alternative ways to protect long term wealth. For more information on future tax changes, savings impact and the role of gold, contact info@romanbrothers.co.uk or 0208 080 2848.