An estimated 109,000 people will owe more than £10,000 in tax on their savings income in 2026-27, up from 28,000 in 2022-23, according to freedom of information data obtained by Paragon Bank.

The number expected to owe more than £2,000 has risen more than fourfold since 2022-23, while almost four times as many people are facing bills above £10,000.

The number facing five-figure tax bills has therefore risen by 289% in four years, while 542,000 savers are expected to owe more than £2,000, up more than four-fold from 119,000 in 2022-23 (up 355%).

The number facing tax liabilities above £5,000 is also forecast to reach 144,000, compared with 52,700 four years ago.

Paragon said the big increase comes on the back of higher interest rates pushing more savers above their Personal Savings Allowance, particularly those with larger cash balances or income from multiple accounts. The bank urged savers to review the interest earned across their accounts and consider ISAs and other tax-efficient options where appropriate.

Andrew Wright, head of savings at Paragon Bank, said: "Hundreds of thousands of people are now facing tax bills running into thousands of pounds on their savings income. Savers should regularly check the interest they are earning across all their accounts and understand whether it could create a tax liability."

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