Higher interest rates could lead to more people facing tax bills on their savings Higher interest rates and the move away from cash ISAs could result in hundreds of thousands more people facing tax bills on their savings. The Bank of England has raised interest rates 14 times, bringing the base rate to 5.25%. While this has been beneficial for savers, it has also led to more people exceeding the personal savings allowance and being liable for tax on their savings interest. Basic-rate taxpayers can receive up to £1,000 of interest tax-free, while higher-rate taxpayers can receive up to £500. However, with accounts currently offering 5-6% interest, it is easier for savers to exceed these limits. Financial advice firm AJ Bell has warned that 2.73m Britons will pay tax on their cash savings interest in 2023-24, up from 800,000 in 2020-21.