Following the Chancellor’s announcement of changes to the Dividend Tax Allowance, due in April 2018, new research by the Share Centre suggests that tens of thousands of people could see their income fall as a result of new restrictions on tax free dividends.
Philip Hammond announced in the Budget that the £5,000 tax-free allowance for dividend income would be restricted to just £2,000 from April 2018. According to the Share Centre estimates, 90,000 investors across Britain could be affected, as they would have sufficient funds outside ISAS to produce an income above the £2,000 limit.
Adding to this, the Sunday Telegraph notes that a £50,000 portfolio needs to generate only 4 per cent income to hit the £2,000 threshold.
Whilst the tax environment remains convoluted and confrontational, our experts at Beavis Morgan understand the demands placed on individuals and businesses and we work at understanding you, your business and its unique issues. This enables us to provide the right advice and solutions to help you improve your net worth and increase growth and profitability.
Our diverse team of tax professionals are committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, restructuring your affairs in a tax effective and efficient way.
Contact Alan Ford or you usual Beavis Morgan Partner to find out more.
