Changes to the taxation of dividends

Following the announcement at the Summer Budget, some further details are emerging about the changes to how dividends will be taxed with effect from 6 April 2016. Although there will be some winners from this change, individuals with significant dividend income will pay more income tax.

The initial announcement at the Summer Budget was twofold – an across the board increase in the income tax rate applicable to dividend income and a new £5,000 dividend allowance.

Download our flyer to see a summary of the tax rates.