Chancellor John Healey Increases Savings and Property Taxes

Chancellor John Healey introduced new tax charges on savings and property income as part of the 2026 budget. Effective April 6, the new rates are set at 24% for basic-rate taxpayers, 44% for higher-rate taxpayers, and 49% for those on the additional rate.

These rates represent a two percentage point increase over the figures previously planned by former chancellor Rachel Reeves. While increasing the tax burden on income, Healey scrapped a separate proposal that would have reduced the cash Isa limit for individuals under 65 from £20,000 to £12,000 in April 2027.

Financial experts warn that these higher taxes will make it more difficult for savers to beat inflation. They suggest that taxpayers mitigate the impact by increasing pension contributions, utilizing junior Isas, or investing in low-coupon short-dated gilts.