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Low-income savers face a letter from HMRC demanding £992 under a Labour Party government move. The Labour Party government's frozen personal allowances mean pensioners relying on modest savings will be among those hit hardest.

The freeze has held the threshold at £12,570 since 2021 and is pulling thousands of previously exempt households into the tax net. AJ Bell analysis shows someone earning £15,549 with £5,000 in savings interest now incurs a combined tax bill of £992.

Sarah Coles, of stockbroker Hargreaves Lansdown, warned: “This will affect an awful lot of pensioners with modest personal pensions and reasonable savings, who rely on the starting rate to keep their tax bills down.”

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Antonia Sto

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