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

CGT: A stealth tax representing advice opportunity

CGT: A stealth tax representing advice opportunity

'The sharpest sense of grievance may be among business owners'

Andrew Aldridge
clock 12 August 2026 • 8 min read
The forgotten side of IHT planning: Giving clients permission to enjoy their wealth

The forgotten side of IHT planning: Giving clients permission to enjoy their wealth

'I believe IHT planning is becoming as much about psychology as legislation'

Lee Quinn
clock 11 August 2026 • 4 min read
IHT liabilities hit record £7.03bn in 2023-24 tax year

IHT liabilities hit record £7.03bn in 2023-24 tax year

Figures ‘set to accelerate’

Sophia Panayi
clock 30 July 2026 • 2 min read