HMRC to contact 887,000 savers with over £3,500 in the bank
The taxman is reminding people that while their savings are safe, the interest they earn on them is taxable
Almost 900,000 savers across the UK might be in for a surprise as they could soon receive letters from HMRC warning them about an impending tax bill on their savings interest. Although savings themselves aren't taxed, the interest they generate can be, particularly now with higher rates pushing more people over the Personal Savings Allowance.
At present, basic-rate taxpayers can earn up to £1,000 of interest tax-free each year, while higher-rate taxpayers have a limit of £500. Additional-rate taxpayers don't get any allowance.
This issue is particularly problematic for those using fixed-rate savings accounts, where money is locked away and interest is paid out in a lump sum at maturity. As HMRC taxes interest in the year it becomes accessible, savers using multi-year deals may find that accumulated payouts push them into taxable territory.
For instance, a higher-rate taxpayer with just £3,500 in a three-year fixed-rate account paying 5% could exceed their allowance. Basic-rate taxpayers would face the same issue with around £7,000 under similar conditions.
Research by Paragon Bank reveals that 2.4 million fixed-term, non-ISA savings accounts will mature in the next three months, with 887,000 of those generating enough interest to trigger a tax liability, reports the Express.
Laura Suter, director of personal finance at AJ Bell, has cautioned savers: "Many people won't realise that [fixed rate accounts] could leave them with a tax headache in the future. You are taxed on the interest on your savings when it is accessible by you. So if you pick a fixed-rate savings account that pays out all the interest at maturity, for tax purposes all of that interest will be counted in one tax year."
She added that the accumulated interest might push someone over their Personal Savings Allowance: "This means that the interest from just one account could take you over your Personal Savings Allowance on its own."
To escape this tax trap, Ms Suter recommends choosing accounts with monthly or annual interest payments: "This means it is spread across different tax years. Or you can opt for a fixed-term ISA savings account, where you won't pay any tax on the interest."
Currently, Individual Savings Accounts (ISAs) enable UK savers to protect up to £20,000 annually from taxes.
Derek Sprawling, saving chief at Paragon Bank, pointed out the potential tax implications for non-ISA fixed term account holders: "Over half a million non-ISA fixed term accounts are maturing with sufficient interest to incur a tax bill for the holder and I would expect those savers to consider switching to an ISA variant if they don't already utilise their annual tax-free allowance."
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Glasgow Times
an hour ago
- Glasgow Times
BBC Bargain Hunt expert jailed over art sales to ‘Hezbollah financier'
Oghenochuko Ojiri, 53, sold artwork worth around £140,000 to Nazem Ahmad, a man designated by US authorities as a suspected financier for the Lebanese organisation. Ojiri, of Brent, north London, previously pleaded guilty to eight offences under section 21A of the Terrorism Act 2000. He is believed to be the first person to be charged with the specific offence. The art dealer, who has also appeared on the BBC's Antiques Road Trip, was charged with failing to disclose information about transactions in the regulated art market sector on or before dates between October 2020 and December 2021. Art dealer Oghenochuko Ojiri, 53. Picture date: Friday May 9, 2025. (Ben Whitley/PA) US prosecutors say Mr Ahmad was a 'major Hezbollah financial donor' who used high-value art and diamonds to launder money and fund the group. He is accused of evading terrorism sanctions by using front companies to acquire more than 160 million dollars (£120 million) in artwork and diamond services. Following the introduction of new money laundering regulations in January 2020 that brought the art market under HMRC supervision, Ojiri is said to have discussed the changes with a colleague, indicating awareness of the rules. The court previously heard the total value of the artwork sold was around £140,000. The defendant was, at the relevant time, the owner and operator of Ramp Gallery – latterly Ojiri Gallery, Lyndon Harris, prosecuting, said. Mr Ahmad is understood to be based in Beirut, the court heard. Oghenochuko Ojiri has been jailed (Metropolitan Police/PA) Mr Harris said: 'The defendant engaged in discussions with and sales over a 14-month period with Nazem Ahmad and his associates, selling art to the value of £140,000 over that period.' The defendant knew Mr Ahmad had been sanctioned in the US, a previous hearing was told. Ahmad's phone number was saved on Ojiri's phone as 'Moss', the court heard. '[It] appears to have been a name deliberately chosen to disguise Mr Ahmad as being one of his contacts,' the prosecutor said. He added that Ojiri was warned by others about his conduct 'but proceeded to engage in dealings with Ahmad in any event'. Gavin Irwin, defending, said Ojiri was arrested while filming a BBC TV programme. He said: 'He has lost the work he loves. He was arrested while filming a BBC television programme. 'He has already lost, of course, his good name, he was until recently a man of good character.' He said the defendant had been 'naive' in relation to his participation in Ahmad's art market, but that he was 'preyed on by more sophisticated others'. Mr Irwin also said the defendant has lost his business, accepted that he had done wrong and wanted to 'apologise for undermining trust in the industry' and also to 'apologise for the distress that he has caused principally to those who know him, who love him, but also those who have supported him throughout his career'. Mrs Justice Cheema-Grubb sentenced Ojiri to two years and six months in prison at the Old Bailey on Friday, with a further year to be spent on licence. She told Ojiri he had been involved in a commercial relationship 'for prestige and profit', and that he had been 'seeking the kudos of dealing with an eminent name in the dealing world'. She added: 'You knew about Ahmad's suspected involvement in financing terrorism and the way the art market can be exploited by someone like him.' Mrs Justice Cheema-Grubb said that until these events he was 'someone to be admired' and added 'this is the nadir – there is one direction your life can go and I am confident that you will not be in front of the courts again.' The judge said the offences were so serious that only a custodial sentence can be justified. Commander Dominic Murphy, head of the Met's Counter Terrorism Command, said: 'The prosecution, using specific Terrorism Act legislation is the first of its kind, and should act as a warning to all art dealers that we can, and will, prosecute those who knowingly do business with people identified as funders of terrorist groups. 'Oghenochuko Ojiri wilfully obscured the fact he knew he was selling artwork to Nazem Ahmad, someone who has been sanctioned by the UK and US Treasury and described as a funder of the proscribed terrorist group Hizballah. 'Financial investigation is a crucial part of the counter terrorism effort. A team of specialist investigators, analysts and researchers in the NTFIU work all year round to prevent money from reaching the hands of terrorists or being used to fund terrorist attacks.' Bethan David, head of the CPS Counter Terrorism Division, said: 'It is clear that Oghenochuko Ojiri was aware of new money laundering regulations in the art world and that he had knowledge of Nazem Ahmad's background. 'Ojiri engaged in activity designed to conceal the identity of the true purchaser by changing the details on invoices and storing Mr Ahmad's name under a different alias in his mobile phone. 'His motivation appears to be financial along with a broader desire to boost his gallery's reputation within the art market by dealing with such a well-known collector.' Ojiri has appeared on a number of BBC shows including Bargain Hunt and Antiques Road Trip. He described himself as 'absolutely obsessed' with collecting contemporary art in a BBC Q&A. He has previously worked as an auctioneer and is known for championing African and European contemporary art. Hezbollah is a Shia Islamist political and militant group based in Lebanon, backed by Iran and known for its armed resistance against Israel. In the UK, the entire organisation – both its military and political wings – has been banned as a terrorist group since 2019.
South Wales Guardian
an hour ago
- South Wales Guardian
BBC Bargain Hunt expert jailed over art sales to ‘Hezbollah financier'
Oghenochuko Ojiri, 53, sold artwork worth around £140,000 to Nazem Ahmad, a man designated by US authorities as a suspected financier for the Lebanese organisation. Ojiri, of Brent, north London, previously pleaded guilty to eight offences under section 21A of the Terrorism Act 2000. He is believed to be the first person to be charged with the specific offence. The art dealer, who has also appeared on the BBC's Antiques Road Trip, was charged with failing to disclose information about transactions in the regulated art market sector on or before dates between October 2020 and December 2021. US prosecutors say Mr Ahmad was a 'major Hezbollah financial donor' who used high-value art and diamonds to launder money and fund the group. He is accused of evading terrorism sanctions by using front companies to acquire more than 160 million dollars (£120 million) in artwork and diamond services. Following the introduction of new money laundering regulations in January 2020 that brought the art market under HMRC supervision, Ojiri is said to have discussed the changes with a colleague, indicating awareness of the rules. The court previously heard the total value of the artwork sold was around £140,000. The defendant was, at the relevant time, the owner and operator of Ramp Gallery – latterly Ojiri Gallery, Lyndon Harris, prosecuting, said. Mr Ahmad is understood to be based in Beirut, the court heard. Mr Harris said: 'The defendant engaged in discussions with and sales over a 14-month period with Nazem Ahmad and his associates, selling art to the value of £140,000 over that period.' The defendant knew Mr Ahmad had been sanctioned in the US, a previous hearing was told. Ahmad's phone number was saved on Ojiri's phone as 'Moss', the court heard. '[It] appears to have been a name deliberately chosen to disguise Mr Ahmad as being one of his contacts,' the prosecutor said. He added that Ojiri was warned by others about his conduct 'but proceeded to engage in dealings with Ahmad in any event'. Gavin Irwin, defending, said Ojiri was arrested while filming a BBC TV programme. He said: 'He has lost the work he loves. He was arrested while filming a BBC television programme. 'He has already lost, of course, his good name, he was until recently a man of good character.' He said the defendant had been 'naive' in relation to his participation in Ahmad's art market, but that he was 'preyed on by more sophisticated others'. Mr Irwin also said the defendant has lost his business, accepted that he had done wrong and wanted to 'apologise for undermining trust in the industry' and also to 'apologise for the distress that he has caused principally to those who know him, who love him, but also those who have supported him throughout his career'. 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Bethan David, head of the CPS Counter Terrorism Division, said: 'It is clear that Oghenochuko Ojiri was aware of new money laundering regulations in the art world and that he had knowledge of Nazem Ahmad's background. 'Ojiri engaged in activity designed to conceal the identity of the true purchaser by changing the details on invoices and storing Mr Ahmad's name under a different alias in his mobile phone. 'His motivation appears to be financial along with a broader desire to boost his gallery's reputation within the art market by dealing with such a well-known collector.' Ojiri has appeared on a number of BBC shows including Bargain Hunt and Antiques Road Trip. He described himself as 'absolutely obsessed' with collecting contemporary art in a BBC Q&A. He has previously worked as an auctioneer and is known for championing African and European contemporary art. 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Western Telegraph
2 hours ago
- Western Telegraph
BBC Bargain Hunt expert jailed over art sales to ‘Hezbollah financier'
Oghenochuko Ojiri, 53, sold artwork worth around £140,000 to Nazem Ahmad, a man designated by US authorities as a suspected financier for the Lebanese organisation. Ojiri, of Brent, north London, previously pleaded guilty to eight offences under section 21A of the Terrorism Act 2000. He is believed to be the first person to be charged with the specific offence. The art dealer, who has also appeared on the BBC's Antiques Road Trip, was charged with failing to disclose information about transactions in the regulated art market sector on or before dates between October 2020 and December 2021. Art dealer Oghenochuko Ojiri, 53. Picture date: Friday May 9, 2025. (Ben Whitley/PA) US prosecutors say Mr Ahmad was a 'major Hezbollah financial donor' who used high-value art and diamonds to launder money and fund the group. He is accused of evading terrorism sanctions by using front companies to acquire more than 160 million dollars (£120 million) in artwork and diamond services. 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'[It] appears to have been a name deliberately chosen to disguise Mr Ahmad as being one of his contacts,' the prosecutor said. He added that Ojiri was warned by others about his conduct 'but proceeded to engage in dealings with Ahmad in any event'. Gavin Irwin, defending, said Ojiri was arrested while filming a BBC TV programme. He said: 'He has lost the work he loves. He was arrested while filming a BBC television programme. 'He has already lost, of course, his good name, he was until recently a man of good character.' He said the defendant had been 'naive' in relation to his participation in Ahmad's art market, but that he was 'preyed on by more sophisticated others'. Mr Irwin also said the defendant has lost his business, accepted that he had done wrong and wanted to 'apologise for undermining trust in the industry' and also to 'apologise for the distress that he has caused principally to those who know him, who love him, but also those who have supported him throughout his career'. Mrs Justice Cheema-Grubb sentenced Ojiri to two years and six months in prison at the Old Bailey on Friday, with a further year to be spent on licence. She told Ojiri he had been involved in a commercial relationship 'for prestige and profit', and that he had been 'seeking the kudos of dealing with an eminent name in the dealing world'. She added: 'You knew about Ahmad's suspected involvement in financing terrorism and the way the art market can be exploited by someone like him.' Mrs Justice Cheema-Grubb said that until these events he was 'someone to be admired' and added 'this is the nadir – there is one direction your life can go and I am confident that you will not be in front of the courts again.' The judge said the offences were so serious that only a custodial sentence can be justified. Commander Dominic Murphy, head of the Met's Counter Terrorism Command, said: 'The prosecution, using specific Terrorism Act legislation is the first of its kind, and should act as a warning to all art dealers that we can, and will, prosecute those who knowingly do business with people identified as funders of terrorist groups. 'Oghenochuko Ojiri wilfully obscured the fact he knew he was selling artwork to Nazem Ahmad, someone who has been sanctioned by the UK and US Treasury and described as a funder of the proscribed terrorist group Hizballah. 'Financial investigation is a crucial part of the counter terrorism effort. A team of specialist investigators, analysts and researchers in the NTFIU work all year round to prevent money from reaching the hands of terrorists or being used to fund terrorist attacks.' Bethan David, head of the CPS Counter Terrorism Division, said: 'It is clear that Oghenochuko Ojiri was aware of new money laundering regulations in the art world and that he had knowledge of Nazem Ahmad's background. 'Ojiri engaged in activity designed to conceal the identity of the true purchaser by changing the details on invoices and storing Mr Ahmad's name under a different alias in his mobile phone. 'His motivation appears to be financial along with a broader desire to boost his gallery's reputation within the art market by dealing with such a well-known collector.' Ojiri has appeared on a number of BBC shows including Bargain Hunt and Antiques Road Trip. He described himself as 'absolutely obsessed' with collecting contemporary art in a BBC Q&A. He has previously worked as an auctioneer and is known for championing African and European contemporary art. Hezbollah is a Shia Islamist political and militant group based in Lebanon, backed by Iran and known for its armed resistance against Israel. In the UK, the entire organisation – both its military and political wings – has been banned as a terrorist group since 2019.
