Perfect opportunity: Dividend tax changes prompt client reviews

CGT is as complex as it's always been

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Changes to dividend taxation rules give advisers the perfect opportunity to get in touch with affected clients and undertake a much-needed review, writes Alastair Black

Would you like to offer clients an extra £200,000* ISA allowance or does that sound too good to be true? Well, it isn't if it's linked to the changes in dividend tax. From 6 April 2016 the current ‘notional' tax credit that accompanies a dividend payment will be removed. Investors will be able to receive up to £5,000 of dividend income tax-free. Any dividend earned over that figure will be taxed at different levels, depending on tax band. My immediate reaction to the recent changes to dividend tax was first "Great" - a new dividend tax-free allowance of £5,000 - that's got to be a ...

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