Am I paying tax on savings I could shelter?
The savings allowance has been frozen since 2016, the dividend allowance cut 90%, and the capital gains exemption cut to £3,000. Six steps show what you are paying and what moving it would save.
Why this exists: PSA frozen since 2016 · allowances cut 90%. Typically £200–£2,000.
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Rates as at 6 April 2026 — the 2026/27 tax year.
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The rules behind this
Every figure above comes from one of these. Where the tool has interpreted rather than calculated, it says so in the finding.
The personal savings allowance is £1,000 at basic rate, £500 at higher rate and nil at additional rate; it has been unchanged since 2016.
The dividend allowance is £500, reduced from £5,000 in 2017/18.
The ISA allowance is £20,000 across all ISAs and does not carry forward.
The capital gains annual exempt amount is £3,000, reduced from £12,300 in 2022/23.
Transfers between spouses and civil partners living together are on a no gain, no loss basis.
Questions people ask
Why am I suddenly paying tax on savings?
The allowance has been frozen at £1,000 since 2016 while interest rates rose, and frozen income thresholds pushed more people into the higher band where it halves to £500. Nothing about your savings changed — the allowance did not move while everything else did.
How does HMRC know about my interest?
Banks and building societies report it automatically. That is why it usually appears as a change to your tax code rather than a bill, and why people discover it months later.
Is an ISA still worth it at these rates?
More than it was. The shelter is worth your marginal rate on the interest every year, for as long as the money stays in — and unlike the allowances, it has not been cut.
Can I just put savings in my partner's name?
Between spouses and civil partners, yes, and the transfer itself is free of tax. It has to be a real gift though — the money becomes theirs, which is the part worth thinking about before the tax.
What is the 30-day rule?
If you sell a holding and buy the same one back within 30 days, the purchase is matched to the sale and the gain is cancelled. Rebuying inside an ISA, or in a spouse's name, is not caught — which is how the exemption is actually used.