Which party is best for savers and investors?
Frozen allowances already tax more of your interest and gains every year. The parties would take that in very different directions — from Reform's light touch to CGT at 48%.
The squeeze that's already happening
The CGT exemption has fallen from £12,300 to £3,000; the dividend allowance from £5,000 to £500; and the November 2025 Budget raised the rates themselves: dividend tax rose two points from April 2026 (10.75%/35.75%), with savings-interest rates following in April 2027 (22%/42%/47%) and the cash-ISA allowance cut to £12,000 for under-65s from 2027. Frozen income-tax thresholds compound it all (fiscal drag). ISAs remain the core shelter — now with a smaller cash door.
Where the parties stand
- Greens — the biggest change: gains taxed as income (up to 45–48%) and a 1% wealth tax above £10m. Small savers with ISAs untouched; large portfolios squarely targeted.
- Lib Dems — a redesign, not just a rise: £5,000 allowance (up from £3,000 — a cut for small investors) with 20/40/45% bands on large gains.
- Labour — the November 2025 Budget raised dividend, savings and property income rates by 2 points (phasing 2026–27), on the argument that income from assets should be taxed more like income from work.
- Reform UK — no direct savings-tax pledge, but the £20,000 allowance shelters more interest for modest savers, and the Britannia Card courts internationally mobile wealth.
- Conservatives — instinct to protect savers; Triple Lock Plus is effectively a savings-tax cut for pensioners.
The bottom line
Everyday ISA savers are barely touched by any plan — the action is above the shelters. An investor realising £20,000 of gains a year faces roughly £4,080 today, £3,000 under the Lib Dems, and up to £6,800–£8,160 under the Greens: the CGT calculator runs your own numbers, and the impact calculator adds the rest of your finances.
See every party's impact on your own numbers → · Full compare matrix →
Frequently asked questions
Which party would raise capital gains tax?
The Greens (gains taxed at income-tax rates, up to 45–48%) and the Lib Dems (20/40/45% bands on the gain, but with a higher £5,000 allowance that cuts tax for small investors). Labour has held rates at 18/24% after raising them in 2024.
Would a wealth tax affect ordinary savers?
No — the Green proposal starts at £10 million of household wealth, roughly the top 0.1%. Ordinary savers are far more affected by frozen allowances: the £500 dividend allowance and £3,000 CGT exemption tax activity that was tax-free five years ago.
Are ISAs safe from tax changes?
Existing ISA holdings stay tax-free and no party proposes taxing them. But the November 2025 Budget cut the cash-ISA contribution allowance to £12,000 a year for under-65s from April 2027 (the overall £20,000 ISA allowance is unchanged — the balance must go to investments), to nudge savings toward markets.