Month: November 2015
Dividend Tax – what the changes may mean for you
November 25, 2015 @ 6:56 pm by Natalie Friel
HMRC have now issued a factsheet detailing exactly how dividend income will be taxed from April 2016, revealing another surprise about the changes ahead.
Within the working examples, there is good news that any unused personal allowance can still be offset against dividend income. However, unexpectedly the new tax free ‘dividend allowance’ of £5,000 will sit within the basic or higher rate tax bands rather than being kept separate.
What this means is that any dividend earned within the £5,000 allowance will not incur tax, however it will count towards your basic or …Read More