Hammond's dividend tax leaves '90,000 investors' worse off

The retail stockbroker said the changes will typically affect investors with portfolios valued at more than £50,000 (assuming a 4% yield, a portfolio size of £50,000 would generate dividend income of £2,000). It added an "unintended consequence" of the change could be that it penalises those using dividends to fund their retirement. In the 2017 spring Budget, Chancellor Philip Hammond cut the dividend tax allowance from £5,000 to £2,000 with the reduction set to take effect from April 2018. The government said the move - alongside the now scrapped proposals to increase Class 4 Nati...