Five things you need to know about the tax-free dividend allowance

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. ...