Has dividend allowance change for 17/18 been pulled?
8:51 AM, 9th May 2017, 9 years ago
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If anyone else benefits from the 5k dividend allowance that was reduced to £2k in the budget, there may be some good news. It looks like the proposal was pulled from the finance bill as they were rushing to get more important measures through.
I have looked at HMRC and it does show the allowance at £5k for the year 17/18. Not sure if it can still be moved post election for the current tax year though.
Have I got this right, can anyone confirm.
Trevor
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Member Since February 2011 - Comments: 3453 - Articles: 286
8:59 AM, 9th May 2017, About 9 years ago
Hi Trevor,
Yes I did read in the FT and Guardian that the Dividend changes had been dropped from the bill, but that they would likely be quickly reinstated after the election assuming a Tory win.
Member Since July 2013 - Comments: 1996 - Articles: 21
10:37 AM, 9th May 2017, About 9 years ago
Reply to the comment left by “Neil Patterson” at “09/05/2017 – 08:59“:
I agree with Neil. After the election the Chancellor will need all the tax he can get so expect the Tories to reinstate the proposal. If, God forbid, the new Chancellor is John the Marxist then it certainly will be.
An interesting article http://www.accountingweb.co.uk/tax/personal-tax/non-dom-planning-thrown-into-chaos-by-finance-bill-changes? shows the problems of trying to anticipate tax changes. So if you are thinking of declaring a £5K dividend now, you might get your fingers burned if the change is backdated to April 6th.
Member Since July 2013 - Comments: 1434
2:28 PM, 9th May 2017, About 9 years ago
You can’t trust HMRC on-line for ‘recent’ changes in tax law.
When I did my tax return a couple of days ago, the help still said that there is no Renewals allowance for unfurnished properties.
Member Since February 2016 - Comments: 39
5:10 PM, 9th May 2017, About 9 years ago
Reply to the comment left by “Ian Narbeth” at “09/05/2017 – 10:37“:
actually, I originally thought the reduction to £2k was due to come into force from April this year, but I understand its from 2018. Is that correct or just wishful thinking on my part?
Member Since July 2013 - Comments: 1264 - Articles: 1
5:20 PM, 9th May 2017, About 9 years ago
Reply to the comment left by “Michael Barnes” at “09/05/2017 – 14:28“:
can you clarify please? what is the recent change you refer to?
Member Since July 2013 - Comments: 1434
8:45 PM, 10th May 2017, About 9 years ago
Reply to the comment left by “Puzzler ” at “09/05/2017 – 17:20“:
Any recent change.
My example is a change for the 16/17 tax year that has not been updated on HMRC web site.
Member Since June 2014 - Comments: 325
8:57 PM, 27th May 2017, About 9 years ago
As I understand the issue, from April 2016 a dividend allowance of £5,000 was introduced and also applies to the current tax year 2017/18. However from April 2018 this zero rate band will reduce to £2,000.
Dividend income is taxed at 7.5% where it falls within basic rate band, 32.5% to the extent falls within higher rate band and 38.1% where additional rate band.