Millions of savers taxed for the first time in 10 years

THE Chancellor was accused of ‘salamislice’ stealth taxes as he froze allowances for savers.

This will leave many facing a tax bill on their savings income for the first time in a decade.

Those who pay the basic rate of income tax can earn £1,000 in interest from their savings tax-free, while higher rate payers can earn up to £500 per year.

Yesterday these allowances were frozen, despite rampant 10 per cent inflation eating away at the value of money saved in the bank.

The annual Isa allowance, which allows savers to shelter money from taxes, was again frozen at £20,000 – where it has been since April 2017.

Former Cabinet minister Jacob ReesMogg said: ‘Everybody is having a realterms increase in their tax because of the failure to uprate thresholds. We have seen the tax take rise.’

Small and medium-sized pension savers were also left out of yesterday’s announcements. Abolishing the £1.07million allowance and increasing the annual cap from £40,000 to £60,000 helps only top earners.