Rachel Reeves has given the green light for a tax crackdown from HMRC on savings accounts. Banks will pass details to HMRC before tax is withdrawn straight from paypackets for some people under a crackdown greenlit by the Labour Party Chancellor.

Ms Reeves reportedly wants it to be easier for HMRC to charge people the tax due on their savings, with an estimated 300,000 more people than five years ago now passing the threshold for when that payment kicks in.

For the 2025/26 tax year, if you live in England, Wales or Northern Ireland, there are three marginal income tax bands which set the rate of tax you pay – the 20% basic rate, the 40% higher rate and the 45% additional rate.

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Marginal bands mean you

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