Tax efficient income: Dividend tax changes a boon for investors

From April 2016, up to £5k dividend income tax-free

clock • 3 min read

Most recent tax changes have not favoured higher rate taxpayers but tweaks to the personal taxation of dividends could 'well be an exception', writes Andy Zanelli

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...

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

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Reeves has 'huge opportunity' to reform taxes in Autumn Budget

Reeves has 'huge opportunity' to reform taxes in Autumn Budget

‘Frankly, it’s become quite desperate’

Isabel Baxter
clock 14 October 2025 • 4 min read
IHT on pensions changes slammed as 'unworkable' - PIMFA

IHT on pensions changes slammed as 'unworkable' - PIMFA

Risk creating serious problems for bereaved families, trade body warns

Isabel Baxter
clock 24 September 2025 • 4 min read
IHT receipts rise again to £3.7bn as Autumn Budget looms

IHT receipts rise again to £3.7bn as Autumn Budget looms

Up £190m year-on-year amid government’s ‘fiscal bind’

Isabel Baxter
clock 19 September 2025 • 4 min read