Tuesday 20th November 2018

Personal Tax: Dividend Tax Allowance falls from £5000 to £2000 from April 2018

From 6 April 2018, those who receive more than £2000 in dividend income will be taxed at 7.5% up to a total dividend income of £33500. For dividend income between £33500 and £150000, the tax rate will be 32.5%, rising to 38.1% for dividend income above £150000.

Save tax If you have a partner or children
You can transfer shares to a partner or adult children so that they can benefit from the £2000 tax free dividend allowance.  Furthermore, if they have any unused personal allowance, they can be employed in the business and received up to £11,500 tax free.