NS&I ups its rates

The government set National Savings & Investments (NS&I) a higher net fundraising target for 2026/27. NS&I first responded by reintroducing Green Bonds at an uninspiring three-year fixed rate of 3.82%. It then improved the fixed rates on British Savings Bonds (including a three-year rate of 4.45%). Finally, it upped its variable rates and increased the Premium Bond prize fund rate to 3.8%, with the odds of a monthly win shortening to 22,000 to 1.

The top tax takes

In early May, HMRC published tables showing its initial estimates of tax receipts in 2025/26. Three taxes – income tax, national insurance contributions and VAT – accounted for 75.8% of the total. Add in corporation tax and the tally rises to nearly 86%. Those proportions are no surprise – for the last ten years the pattern has been very similar. The quartet’s dominance helps explain why the Chancellor, constrained by manifesto tax pledges, has to be ever more creative raising additional revenue.

Pensions and inheritance tax

In May, HMRC published a ‘technical note’ on how inheritance tax will be collected on pensions from 2027/28. The note says the process may involve personal representatives asking pension providers to withhold up to half of the payment due to beneficiaries, pending payment of tax. That alone could be a reason to review your will and who you wish to administer your estate