Dividend taxation – all change from April 2016

The tax regime for dividends will change for 2016. This sees the abolition of the dividend tax credit, a dividend tax-free allowance and tax rates for dividend receipts.

Dividend tax free allowance £5,000 – then tax is payable :

All Basic rate taxpayers 7.5%
Higher rate taxpayers 32.5%
Additional rate taxpayers 38.1%

Clients should contact us now about this issue to discuss potential increases in income tax payable.

Comments are closed.

Post Navigation