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Dividend Allowance Reduction!

Ten Facts You Might Not Know About Stamp Duty

The 2017 budget was released earlier this week, and some of the news doesn’t make for the best of reading, especially if you have a limited company from which you receive dividends!

Since April 2016, dividends have been subject to tax, although with the sweetener that the first £5,000 of dividends would be tax-free.  However, it has now been announced that next year dividends are going to take a further beating.

From April 2018, the dividend allowance is being slashed from £5,000 to just £2,000, which means you could potentially have to pay up to an additional £225 tax per year if you are a basic rate tax payer, or £975 if you are a higher rate tax payer!