Reduction of Dividend Allowance?

ColdIron

bowlhead99 wrote: »

Not particularly welcome but there are other things they could have done which would affect me more.

I agree. The oft predicted drastic cut in the CGT allowance would have been more problematic for planning. There's a year to mull it over and it's hard to grizzle over £225. That's a 2 cups of cheap coffee a week

talexuser

le_loup wrote: »

If you are the remaining 1%, do you really want sympathy for a measure that was crazy in the first place?

I don't think I'm anywhere near the 1%, just thought this topic might well affect some here But obviously I should not pay any tax at all, and the burden should be on everyone else

DavidT67

Dividends aren't just about savings and investment income, standard way for closed company owner / shareholders to take income.

The reduction in dividend allowance is probably to target those who work through limited companies in the same way the NI class 4 rise targeted sole traders.

Also don't expect that 7.5% rate to stay untouched for long !

None of this impacts the Chancellor and his backers as they have their millions in offshore trusts...

AnotherJoe

Seems fair enough to me, will stop some of the frankly cheating that goes on with the self employed paying themselves dividends instead of pay, essentially a legal tax dodge, and outside them, only affect a very small minority with so many shares they cant shelter them in an ISA.

Add to that, there was no real justification I could see for the limit to be raised so high in the first place, why not the same as interest income for example, why 5X that?

[Deleted User]

Yup, great move in my book.

westv

How will this affect Share Incentive Plans? The company I work for only recently advised they would now issue dividends as cash rather than extra shares.

Dird

Now they just have to remove the £2k allowance. Maybe in Autumn

polymaff

talexuser wrote: »

I just saw a headline of a reduction in the shareholder dividend allowance from £5000 to £2000? Presumably this applies to everyone and is unravelling Osborne's policy after only one year?

Two - it doesn't come in until April 2018

ColdIron wrote: »

Same here. Still 7.5% is better than 20%

Not for those the Chancellor is gunning for. For them it is 32.5% instead of 0% on £3,000.

Stinging his own supporters for about £1,000 per annum. :(:(

Apodemus

AnotherJoe wrote: »

Add to that, there was no real justification I could see for the limit to be raised so high in the first place, why not the same as interest income for example, why 5X that?

Presumably the justification was comparability of return on unwrapped investments? I would guess that £5k in dividends would be achievable on something between £125k and £150k, which, if held in the bank instead, would earn you somewhere around £1k.

bigadaj

It's just a bit depressing at the lack of consistency.

Stick with things for a bit after proposing them surely, ok it's a different leadership but still the same party elected by the same electorate.

You can't do a lot if a new party comes in but if politicians would stop tinkering it would be a lot better for everyone.