Changes to taxation of dividends

taxation of dividends

The Chancellor has announced that from 6 April 2016 there will no longer be a notional tax credit associated with dividends received and the following rates will apply after a £5,000 tax free dividend allowance:

Basic rate taxpayers         – 7 ½%

Higher rate taxpayers        – 32 ½%

Additional rate taxpayers – 38.1%

This will mean that from 2016/17 individuals will be able to receive up to £17,000 tax free:

Personal allowance          £11,000

Tax free interest                £1,000

Tax free dividends             £5,000

your psc your sole trader your payroll the cps group
the cps group on twitter the cps group on linkedin the cps group facebook page the cps group google+ page