Following this Summers Budget the Chancellor has introduced new rules for taxing dividends which will commence from 6 April 2016.
From 6 April 2016 the 10% dividend tax credit will be abolished.
The new rules will result in the first £5,000 will be tax free.
Dividends received that are greater than £5,000 will be taxed at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers.
Careful tax planning will need to be considered now before the new rules start. For owner managed businesses tax efficient extraction of funds out of their company is even more important with the introduction of possible higher tax liabilities!
Please call our tax experts that can talk you through the possible tax planning opportunities to save you tax.
