How changes to investment tax could impact clients

Changes are set to affect many clients in the coming years

clock • 4 min read

With the new tax year fast approaching, Julia Peake explores the challenges and solutions linked to both CGT and dividend tax changes...

The changes to dividend and capital gains taxation announced in the Autumn Statement will affect many clients in the coming tax years. So, let's have a look at the challenges they could be facing and some potential solutions. Dividend taxation changes It's been announced the dividend allowance will be reduced over the next two tax years from £2,000 to £1,000 tax year 23/24 and then £500 in tax year 24/25. So, how could this impact your clients? To begin with, more clients will pay more tax. Currently, if a client's portfolio worth £50,000 is yielding at 4%, the dividend income tax i...

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