Savings account holders told how to legally avoid new 22% tax on your cash

NewsCost Of LivingYour MoneyTax allowances are being slashed under the new rulesNicholas Dawson03:30, 15 Aug 2026You could be hit by a new 22 per cent tax on your savings(Image: Getty)Savers have been urged to read up on sweeping new tax rules coming in from next year. The new HMRC regime includes the introduction of a 22 per cent tax on your cash. An expert says you may be able to avoid this by making a change to your account.‌As set out at the Autumn Budget, the Government is restricting the ISA allowances that savers enjoy. Under the current rules, you can put away up to £20,000 a year into these tax-free accounts, dividing your allowance however you want between cash ISAs and stocks and shares ISAs. But from April 2027, this will effectively be cut so you can only use £12,000 of the al