24% of people think all their savings are tax-free, according to a Lloyds Bank survey carried out in February 2025. However, they could be in for an unexpected shock, as the interest earned on savings might be liable for Income Tax. The good news is, there are often ways to reduce a potential tax bill on your savings. Read on to find out when your savings might be taxed and how to avoid an unexpected bill. 3 allowances that may affect whether you’re liable for tax on your sa