Dividend allowance: don't lose out

With the introduction of the £5,000 ‘tax free’ Dividend Allowance from 6 April 2016, there has been a dividend regime benefiting those receiving relatively small amounts in dividends. But there’s change on the way which is not such good news. From 6 April 2018, the dividend allowance falls from £5,000 to £2,000, impacting personal and family companies where a large part of the profits is extracted as dividends.

Change for investors

The cut to the dividend allowance will affect dividend-paying shares and investment funds held outside Individual Savings Accounts (ISAs) or pensions. Be aware of your ISA entitlement: £20,000 for 2017/18.

Year End Tax Planning Guide 2018