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  • FIRST POST
    • talexuser
    • By talexuser 8th Mar 17, 1:38 PM
    • 2,398Posts
    • 1,896Thanks
    talexuser
    Reduction of Dividend Allowance?
    • #1
    • 8th Mar 17, 1:38 PM
    Reduction of Dividend Allowance? 8th Mar 17 at 1:38 PM
    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?

    Ho Hum, I just bought my first unwrapped ITs last April designed for dividends of just below 5k.
Page 5
    • Economic
    • By Economic 15th Mar 17, 3:35 PM
    • 249 Posts
    • 227 Thanks
    Economic
    That is politics! There was an economic rationale for the increase in the NIC, but there is no economic rationale for the reduction in the dividend allowance as it causes the profits of firms to be taxed twice.
    • masonic
    • By masonic 15th Mar 17, 3:50 PM
    • 9,224 Posts
    • 6,354 Thanks
    masonic
    That is politics! There was an economic rationale for the increase in the NIC, but there is no economic rationale for the reduction in the dividend allowance as it causes the profits of firms to be taxed twice.
    Originally posted by Economic
    The way things are headed, corporation tax could disappear altogether. I suppose this change gives them some wiggle-room to offer further incentives to businesses to remain here.
    • talexuser
    • By talexuser 15th Mar 17, 8:13 PM
    • 2,398 Posts
    • 1,896 Thanks
    talexuser
    And we can look forward to some other tax increase in the Autumn budget to compensate apparently.
    • angelfire
    • By angelfire 11th Apr 18, 12:04 PM
    • 820 Posts
    • 184 Thanks
    angelfire
    Can anyone tell me whether dividends paid in April 2018, this month, but RELATE to company profits for the 17/18 financial year will fall foul of this change? Or is is simply that as it is going to be paid this month, regardless of the year it relates to, there’s still a £2k threshold?
    • Tom99
    • By Tom99 11th Apr 18, 12:07 PM
    • 2,070 Posts
    • 1,393 Thanks
    Tom99
    Can anyone tell me whether dividends paid in April 2018, this month, but RELATE to company profits for the 17/18 financial year will fall foul of this change? Or is is simply that as it is going to be paid this month, regardless of the year it relates to, there’s still a £2k threshold?
    Originally posted by !!!!!!!!!
    Divs paid on or after 6th April 2018 will count towards your £2,000 2018/19 allowance
    • angelfire
    • By angelfire 11th Apr 18, 12:18 PM
    • 820 Posts
    • 184 Thanks
    angelfire
    Divs paid on or after 6th April 2018 will count towards your £2,000 2018/19 allowance
    Originally posted by Tom99
    I figured as much! Thank you for your reply!
    • Mosler
    • By Mosler 11th May 18, 2:02 PM
    • 25 Posts
    • 2 Thanks
    Mosler
    Do small amounts of dividend tax need to be declared, such as £20, if the person isn't required to complete a self assessment form? Or is this automatically taken?
    • polymaff
    • By polymaff 11th May 18, 3:56 PM
    • 2,082 Posts
    • 907 Thanks
    polymaff
    Do small amounts of dividend tax need to be declared, such as £20, if the person isn't required to complete a self assessment form? Or is this automatically taken?
    Originally posted by Mosler
    https://www.gov.uk/tax-on-dividends
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