# UK Households Face Higher Tax Charges on Savings and Property Chancellor John Healey doubles planned tax hikes on savings and property income starting April 2027. - **Source:** [Daily Express :: Finance Feed](https://www.express.co.uk) - **Published:** 2026-11-05 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/30362811-9295-4404-b522-41a0061525d4 ## New Tax Burden Announced UK households are bracing for significant tax increases starting April 6, 2027, following Chancellor John Healey’s Autumn Budget. The government has confirmed new rates for savings and property income, which are higher than previously anticipated. These adjustments aim to support fiscal discipline while ensuring that various public measures remain fully funded by taxpayers. ## Doubled Rate Increases Former Chancellor Rachel Reeves initially planned a two-percentage-point hike across income tax bands. However, John Healey decided to double this increase to four percentage points. This policy shift directly impacts individuals earning income from property rentals or savings held outside of tax-advantaged accounts, significantly raising the total annual tax liability for many. ## Impact on Taxpayers Affected taxpayers will face average annual increases of £225 for property income and £113 for savings income. While these figures represent averages, individuals with higher-than-average holdings will experience even steeper costs. Approximately 5% of taxpayers are expected to see the property tax rise, while 12% will be affected by the savings tax increase. ## Specific Rate Adjustments Basic rate taxpayers earning under £50,270 will see savings tax rates rise from 20% to 24%. Higher rate taxpayers above £50,270 face an increase from 40% to 44%. Meanwhile, top rate taxpayers earning over £125,140 will see their rates jump from 45% to 49%, with identical structures applied to all property income. ## Government Fiscal Rationale The government justifies these measures as a fair and proportionate approach to maintaining fiscal stability. Officials state that 84% of income tax payers will remain unaffected by these specific changes. The revenue generated is intended to support broader government commitments, ensuring that essential services and household support programs remain adequately funded through 2028. ## Distribution of Revenue Budget documents indicate that approximately half of the total revenue raised from these tax adjustments will come from the top 10% of households. This concentration suggests a progressive element to the policy, targeting those with larger asset bases. The government maintains that this strategy is necessary to meet its long-term economic objectives. ## ISA Allowance Stability Amidst the tax hikes, there is a positive development regarding individual savings accounts. The government has reversed plans to cut the annual cash ISA allowance from £20,000 to £12,000. Haydn Thomas of Cornerstone Finance Group welcomed this decision, though he noted that the simultaneous increase in savings tax rates remains a significant concern. ## Thresholds and Future Outlook For a basic rate taxpayer to trigger tax on interest, they would need over £150,000 in savings held outside an ISA, assuming a 4% return. As the April 2027 implementation date approaches, taxpayers are encouraged to review their financial portfolios to mitigate the impact of these higher rates on their overall annual income. ## Sources covering this story - https://www.express.co.uk/finance/personalfinance/2263539/uk-households-face-113-225 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._