Reduction to tax-free dividend allowance confirmed

You may recall Chancellor Hammond announcing in his Spring Budget that the tax-free dividend allowance would reduce from £5,000 pa to £2,000 from 6 April 2018. However, given the amount of ‘distraction’ and rather frenzied political climate at the time, this proposed legislation was dropped at the last minute and didn’t make it into the Finance Act earlier this year. … Read More

Major changes to taxation of dividends – are you affected?

Changes to taxation of dividends announced in Budget 2015 In this year’s summer Budget the Chancellor announced major proposals for the taxation of dividends. The main aim of the legislation was to deter small businesses from incorporating so that directors can be remunerated through tax-efficient dividends rather than salaries. Higher rate taxpayers in receipt of dividend income will also lose … Read More