{"id":224377,"date":"2025-10-25T09:05:12","date_gmt":"2025-10-25T09:05:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/224377\/"},"modified":"2025-10-25T09:05:12","modified_gmt":"2025-10-25T09:05:12","slug":"hmrc-to-bill-more-than-one-million-state-pensioners-with-45-demand","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/224377\/","title":{"rendered":"HMRC to bill more than one million state pensioners with ‘45% demand’"},"content":{"rendered":"

The number of state pensioners facing tax bills on their savings income has more than doubled since 2022-23, HMRC data and Labour Party government figures show<\/p>\n

James Rodger Content Editor<\/p>\n

11:31, 24 Oct 2025<\/p>\n

\"AHMRC is poised to issue tax bills to over one million state pensioners(Image: vgajic via Getty Images)<\/p>\n

HMRC is poised to issue tax bills to over one million state pensioners<\/a>, according to recent warnings. The number of state pensioners<\/a> facing tax bills on their savings income has more than doubled since the 2022-23 financial year, as per HMRC<\/a> data and figures from the Labour<\/a> Party government.<\/p>\n

This surge is attributed to high interest rates and frozen thresholds. Nearly half of the 2.6 million taxpayers<\/a> expected to pay savings tax in the 2025-26 financial year are those above the state pension age, official figures reveal.<\/p>\n

Out of the 1.2 million pensioners who will incur a tax liability, over 80,000 will be taxed at 45% on the interest they earn on savings held outside cash ISAs, which are tax-free accounts. This figure has seen a significant rise from 33,000 three years ago.<\/p>\n

Our ChronicleLive Daily newsletter is free. You can sign up to receive it here<\/a>. It will keep you up to date with all the latest breaking news and top stories from the North East.<\/p>\n

731,000 of those expected to pay will be subject to the basic rate – two-thirds. Charlene Young, from investment platform AJ Bell, which submitted the Freedom of Information request, commented: “In retirement it is common to hold a little more cash.<\/p>\n

“People often want to de-risk some of their investments and those with a good handle on their spending needs might look to build a cash flow ladder or funnel to match what they’ve got planned for the next few years.”, reports Birmingham Live<\/a>.<\/p>\n

“Unfortunately, that appears to be leading to a large number of pensioners suffering a tax bill on their cash savings with increasing numbers being dragged into higher tax bands too.”<\/p>\n

Anna Bowes, from financial planning firm The Private Office, commented: “The people who are the wealthiest and have probably got the most in cash savings \u2013 one because they’ve been saving their whole lives and two because they’ve reduced the risk of their portfolios so they have more in cash \u2013 then the freeze in the personal savings allowance will mean they are being dragged into paying more tax than ever.”<\/p>\n

A spokesperson for HM Treasury responded: “We are committed to helping our pensioners live with dignity and respect. Thanks to our commitment to the triple lock, millions will see their pension rise by up to \u00a31,900 this parliament.<\/p>\n

“We will also protect the cash savings that are important for many pensioners who have put money away for a rainy day.<\/p>\n

“But the Chancellor has been clear that she wants to get Britain investing again \u2013 so British companies can grow and British savers who choose to can get more in return.”<\/p>\n","protected":false},"excerpt":{"rendered":"The number of state pensioners facing tax bills on their savings income has more than doubled since 2022-23,…\n","protected":false},"author":2,"featured_media":224378,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,2218,4174,4175,56,54,55],"class_list":{"0":"post-224377","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-hmrc","11":"tag-personal-finance","12":"tag-personalfinance","13":"tag-uk","14":"tag-united-kingdom","15":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/224377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=224377"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/224377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/224378"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=224377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=224377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=224377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}