Advisers have just over a year to organise their clients' dividend income to shield it as much as possible from the reduction in the tax-free dividend allowance but, says Rachel Vahey, they do have a range of options to consider
One of the most significant changes from the 2017 Spring Budget is the reduction in the tax-free dividend allowance from £5,000 to £2,000. It affects shareholder directors and investors with significant portfolios - of typically more than £50,000 - and means more people may have to pay more tax on their dividend income. The change is effective from April 2018, leaving advisers and their clients just over a year to organise their dividend income to shield it as much as possible from increased tax charges. Clients and their advisers do, however, have a number of options to consider. 1. ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes