Chancellor John Healey's recent budget has introduced higher tax rates on savings and property income, adding two percentage points to previously announced increases. While the cash ISA limit for under-65s remains unchanged, the new tax structure poses challenges for savers, especially in a high-inflation environment.
Experts suggest that savers can take steps to mitigate the impact of these tax changes, such as utilizing tax-free allowances and considering alternative investment options. Strategies may include transferring savings between partners to optimize tax benefits and exploring government-backed premium bonds or short-dated gilts.