Tax efficient income: Dividend tax changes a boon for investors

The concept of asset allocation at the underlying investment level has long been accepted practice. In recent years, tax changes have extended this thinking to investment wrappers as well and many advisers are well practiced in combining them to produce tax efficient income for clients. As with all aspects of financial planning this needs regular reviews and next April is no exception. The most recent changes in tax have not favoured higher rate taxpayers. However, the changes to the personal taxation of dividends could well be an exception to this trend. From 6 April 2016 the c...