Govt targeting basic-rate taxpayers with latest dividend income hike

Crackdown on 'wealth' taxes final blow to income investors

clock • 3 min read

Never has there been a better argument for two things: tax wrappers and financial advice, writes Laura Suter

The government has been gradually waging a war on dividends, and it's happened so gradually that many investors won't have felt the pinch. But the rate on tax has been creeping up for years, with the final blow for income investors dealt at last week's Autumn Statement. New chancellor Jeremy Hunt announced plans to slash the tax-free allowance on dividends from the current £2,000 down to just £500 by April 2024. Alongside similar cuts to capital gains tax, the cut formed part of the chancellor's crackdown on so-called wealth taxes. It's a move that's popular with the broader public, who ...

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

Simple savings vehicle for disabled clients welcomed as 'groundbreaking'

Simple savings vehicle for disabled clients welcomed as 'groundbreaking'

Potential to widen access ‘if implemented well’

clock 05 February 2026 • 4 min read
Personal representatives face delays and fines due to 'lost' wills and pensions

Personal representatives face delays and fines due to 'lost' wills and pensions

Under pressure to file necessary paperwork with tight deadlines

clock 04 February 2026 • 4 min read
HMRC to rake in £100m from a million late tax returns

HMRC to rake in £100m from a million late tax returns

An estimated one million did not file on time

clock 04 February 2026 • 4 min read