Millions of savers pay too much tax

Jess Bown
Piggy bank
Piggy bank

More than 3 million people paid double the amount of tax they owed on their savings in 2009/10, HM Revenue & Customs admitted this week.

Its figures indicate that only 718,000 people applied for a rebate of at least some of the 20% tax automatically deducted from standard savings accounts, despite some 3.5 million being liable to pay just 10%.