Reduction of Dividend Allowance?
Comments
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You missed the point that they might not be eitherAnotherJoe wrote: »You missed the "or" before my "dim" statement. That's the "very wealthy or as dim....
you missed the point that he was bunging it to the Scots to keep them in UK so Her Maj can keep Balmoral..AnotherJoe wrote: »the money saved by the chancellor going to other places instead, such as, IIRC. extra social care.
(and the Essex wide boy car salesman Hammond gets a knighthood?)“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Glen_Clark wrote: »You missed the point that they might not be either
Depends on your definition of 'wealthy' ; lets say for the purposes of this discussion, mine is ;
anyone who can fill a cash ISA up every year and then complain about not being able to add tens of £thousands into tax sheltered dividend paying investments as well, every year.
If there's another category in this respect, (other than wealthy or financially dim), I'm all ears.0 -
That used to be said about Cameron and proved to be rubbish. Have you got any evidence on Hammond?
I'm sure I read some years ago there were several ministers who used offshore schemes, including Hammond.
http://www.itcontractor.com/andrew_mitchell_uses_patrician_offshore_companies/0 -
No. Itr depends on your definition of 'very wealthy' because that is what you said.AnotherJoe wrote: »Depends on your definition of 'wealthy' ;
Now you are backtracking and changing 'very wealthy' to just 'wealthy' which says it all
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
If there's another category in this respect, (other than wealthy or financially dim), I'm all ears.
I appreciate this is the savings/investing forum but the dividend allowance also applies to those of us who are taking dividends from limited companies as our income.
I am one such person.
I do not consider myself wealthy (I'm a basic rate taxpayer).
I am also not financially dim (using the 45.8% relief on my salary sacrifice and paying 7.5% on the divs).
So some basic rate tax payers will have to pay an extra £225 from 2018 and that could be people earning as little as £11K PAYE and £5K dividends, which is no-ones definition of wealthy.0 -
My wife and I have some shares which we have held for many years and were getting the dividends re-invested. However, having taken early retirement we now get the dividend payments in cash.
At the moment we get about £1,600 each per year, so I guess we are okay as we are within the new £2K limit from 2018?0 -
The point I was making was that this allowance has been in for just under 12 months so although reducing it so quickly wasn't a great move for consistency it shouldn't make a massive difference compared to 12 months ago, should it?I appreciate this is the savings/investing forum but the dividend allowance also applies to those of us who are taking dividends from limited companies as our income.
It might not be wealthy but it presumably is still better than paying 20% tax on the whole amount of income?So some basic rate tax payers will have to pay an extra £225 from 2018 and that could be people earning as little as £11K PAYE and £5K dividends, which is no-ones definition of wealthy.Remember the saying: if it looks too good to be true it almost certainly is.0 -
The fact that you are now taking the dividends as cash makes no difference, you were the beneficiary even when they were reinvested. You pay no tax on your dividends now as you are within your allowance. As you will still be within the new allowance from April 2018 you will continue to pay no tax on your dividendsMy wife and I have some shares which we have held for many years and were getting the dividends re-invested. However, having taken early retirement we now get the dividend payments in cash.
At the moment we get about £1,600 each per year, so I guess we are okay as we are within the new £2K limit from 2018?0 -
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 !
There's a lot of scope to raise the 7.5%. To compare marginal total tax rate of employment vs profit from ltd company.
Lower Rate (20%): 40% vs 26%
Higher Rate (40%): 49% vs 46%0 -
I see the debate is hotting up in the usual way. I think the conclusion is you should not introduce something with great fanfare which gets significantly reduced in a short time later (in HMRC terms). At a time of massive debt and trying to reduce the deficit 5K seemed extremely generous to me in the first place, especially with more and more personal companies using dividends to replace income tax etc. Why not start with 1k like the savings interest and see how revenues progress?0
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