However, with the right financial planning strategies, you can protect and even grow your savings despite the new tax landscape. At PayLess Accountants, we help individuals and businesses navigate tax changes smartly and efficiently. Here’s how you can stay ahead.

1. Make Full Use of Your ISA Allowances

ISAs remain the most tax-efficient way to save and invest in the UK.

• Cash ISAs, Stocks & Shares ISAs, and Lifetime ISAs all allow tax-free returns.

• Max out your £20,000 annual allowance to shield your interest from the 2027 tax rise.
  This is the simplest and most effective buffer against the increase.

2. Explore High-Interest, Tax-Efficient Investment Products

Some savings products—such as

• Premium Bonds,

• Certain NS&I accounts, and

• Tax-advantaged investment schemes

do not follow conventional tax rules. Reviewing these options with a financial advisor can help diversify your savings while staying tax-efficient.

3. Consider Spreading Savings Across Family Members

Couples can legally reduce their overall tax burden by sharing savings accounts strategically.

• If one partner earns below the Personal Savings Allowance threshold, transferring savings could minimise the tax impact.

• Joint planning helps both partners optimise their tax position.

4. Review Your Personal Savings Allowance (PSA)

The PSA may remain unchanged, but its impact will vary after the rate increase:

• Basic-rate taxpayers: £1,000 allowance

• Higher-rate: £500

• Additional-rate: £0

Understanding which band you will fall into post-2027 is essential. If your income fluctuates, strategic year-end planning can help keep you in a lower tax bracket.

5. Switch to More Efficient Investment Classes

Bank interest is fully taxable, but investment returns in other asset classes may offer better tax outcomes.

• Dividend-paying shares

• Bonds

• Unit trusts

• ETFs

A diversified investment strategy can reduce exposure to rising savings tax while helping your wealth grow sustainably.

6. Use Pension Contributions to Stay in a Lower Tax Bracket

A powerful but often overlooked strategy:
Increasing your pension contributions could reduce your taxable income enough to keep you in a lower rate band.
This delivers a double benefit:
? Lower tax on savings
? Boosted pension pot

7. Conduct an Annual Tax-Efficiency Review

Tax rules evolve frequently. A yearly tax review with PayLess Accountants ensures:

• Your savings structure remains optimal

• You’re taking advantage of new allowances

• You’re protected from unexpected tax impacts

Our experts help you adjust your plan before the tax year ends.

8. Consider Long-Term Wealth Planning

If you hold substantial savings, consider:

• Trust structures

• Wealth transfer strategies

• Corporate investment accounts

These advanced planning tools can legally reduce long-term tax exposure.

Final Thoughts

The 2027 savings tax increase may feel like a setback, but with proper planning, you can still protect your returns and grow your wealth. Proactive financial strategies—guided by trained professionals—remain your strongest defence.

At PayLess Accountants, we specialise in helping clients navigate tax changes confidently and legally. Let us support you in building a tax-efficient savings plan for 2027 and beyond.

Disclaimer

This blog is for general informational purposes only and should not be considered financial or tax advice. Tax rules may change, and the strategies mentioned may not be suitable for everyone. Please consult PayLess Accountants or a qualified financial professional for personalised advice tailored to your individual situation.