Changes to Dividend Allowance

Dividend Allowance Currently only higher or additional rate taxpayers pay tax on dividends. However from April 2016 the Dividend Tax Credit will be replaced by a new tax-free Dividend Allowance. The Dividend Allowance means that you won’t have to pay tax on the first £5,000 of your dividend income, no matter what non-dividend income you have. The allowance is available …

Change to dividend income taxation

The following is a Factsheet published by HMRC on 17 August outlining a change to Dividend income taxation. 1. Summary From April 2016 the Dividend Tax Credit will be replaced by a new tax-free Dividend Allowance. The Dividend Allowance means that you won’t have to pay tax on the first £5,000 of your dividend income, no matter what non-dividend income …