The Chancellor of the Exchequer delivered his Summer Budget to Parliament on 8th of July 2015. Here are key updates from this budget;
Dividend taxation – all change from April 2016
The tax regime for dividends will change for 2016. This sees the abolition of the dividend tax credit of 10%, a dividend tax-free allowance and tax rates for dividend receipts.
Dividend tax allowance £5,000
Basic rate taxpayers 7.5%; you will pay personal tax on dividends on basic tax band
Higher rate taxpayers 32.5%
Additional rate taxpayers 38.1%