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New Dividend Tax April 2016

Posted on July 18, 2015 by Steve

The changes to dividend taxation announced in the July budget impact significantly on the decision about incorporation. Following the changes made in December 2014 affecting goodwill on incorporation, this change makes it even less attractive for some clients to run their business through a limited company. From April 2016 there will be a dividend Tax allowance of £5000, but after this dividends will be liable to Tax at 7.5% in the basic rate band, 32.5% in the higher rate band and 38.1% in the additional rate band.

This entry was posted in Accounts and Audits, Income Tax and tagged April 2016, budget., companies, dividends. Bookmark the permalink. ← RTI Penalties Making Tax Digital (MTD) →