Three million pensioners are being urged to reclaim tax on their savings – worth up to £1,200 – after an influential Government department recommended that the 10pc rate be axed.

The Office of Tax Simplification has called for an urgent overhaul of the way that pensioners are taxed. While this should simplify many people's financial affairs, many could lose out on thousands of pounds of interest on their savings if the 10pc tax rate is abolished. Evidence suggests that the vast majority of pensioners and low earners who are entitled to pay less tax on their savings do not claim this benefit.....Read more here